stand still, when i was there, the hotels the occupancy was at about 11%. unless people get a message of stability, and a message that is warm and welcoming to business and to capitol, it will be very hard to turn that economy around and provide the stability necessary. this is a revolving circle and it needs to be a virtuous circle, they face a fiscal crisis and worsening political environment and a difficult transition, so i believe it's important that the egyptian government recognize that it just cannot continue to under

mine civil society and persecute the talent that is trying to bring security and prosperity. america stands as a ready and willing partner to support egypt's democratic transition and stablization, but it requires an atmosphere in which egypt's civil society and american friends a s are protec so i hope that this current crisis or challenge standoff, whatever you want to term it, can be resolved in a thoughtfulful and intelligent way or it may become difficult to do the kinds of things necessary. and egypt is important, it's important to the stability of the region, it's important to the peace process ultimately with respect to to israel and palestinians and with all the other turmoil, syria and other

parts of the world, the challenge of iran, the last thing that one needs is an egypt that is not moving along the path to democratic transition and to a stronger economy. now turning to india, we are really pleased to have this opportunity to discuss what is without doubt one of the most significant partnerships in u.s. foreign policy. there are few relationships that will be as vital in this century as the grows ties with the people of india. in all of the global challenges that we face, india has an important role, we will be looking to them for cooperation and innovation and regional leadership. india's significance has been

clear to many of us right now. i traveled to india and took one of the first business trade missions right after the economic reforms were first put in place and i have been there many times since. and and president obama immediately upon entering office inviting prime minister sing to be his guest at the very first state dinner. secretary clinton has visited india twice and both countries inaugurated the strategic dialog two years ago. republicans and democrats alike understand the need to capitalize on the democratic values and strategic interests that our two countries share, that is why it's important that we work together every day, as i believe we are right now, to further cultivate the relationship. we are pleased that president obama has nominated nancy howell

to represent us in i understand yam -- represent us in india, she had has served tours of duty in india and bang la cdesh, she is one of our best and it is only appropriate that she be tasked with one of the state department's most important postings. i think ambassador powell would agree with me that the u.s. and india interests and values are converging today as perhaps never before and consequently america is an interested stakeholder in india's increasing assent to great economic and greater global power and participation. india's economy is projected to be the third largest in the near future and total trade between our countries reached 73 billion in 2010 and could exceed 100

billion this year. in defense, our security cooperation has grown and now india conducts more military exercises than any other country. education is fast become one of the strongest links between the nations. i'm looking forward to building on the progress we made last fall. whether it's helping india to build a network of community colleges or creating educational opportunities via the internet, we can give million office people a greater set of choices and opportunities for this future. as our economies and education systems grow more intertwined and i am convinced they will. we will have greater opportunity to work on technological break

throughs. already india is working on clean energy innovation. india saw 52% growth in clean energy investment in 2011, with leadership from companies like suslan and reliance solar, they have the fourth largest installed wind capacity and incredible solar energy potential. that is why i strongly support the 2009, u.s./india understanding of energy and climate change signed by president obama and and prime minister sing, which is being implemented through initiatives like the partnership to advance clean energy. it's clear that india's strategic role is growing. we agree that the asia pacific region requires india's sustained engagement, whether to promote economic stability in afghanistan or to encourage

human rights in other countries. india enjoys strong cultural historical, people to people and economic links to east asia and i frequently hear that the east ward neighbors see merit in india's contributions to regional peace and prosperity. in the coming years i hope our two countries can deep enour cooperation throughout asia, not based on any common threats, but on the bed rock of shared interests and values. one area that is showing signs of promise, especially on economic cooperation is the india/pakistan relationship. i'm encouraged that pakistan granted them the most favored nation status, and they are continuing dialog on a host of issues and i hope that both countries with seize the moment to break with the perilous and somewhat stereo typed politics

of the past. there's no doubt that even as india moves forward, and even as we celebrate the pluses that i just enumerated, it's clear that india will have to continue to address its own complex domestic challenges, including building their own infrastructure and dealing with booming energy demand and dealing with some restrictive trade and energy practices and a global problem, of human trafficking. more over, there are some 500 to 600 million people living in poverty but clearly india is moving rapidlily through it own economic development to address that and i'm confident that that will continue to change. so, we can be real partners in the effort. and we can do so in ways that

empower all classes of india's society. and i hope they see benefits to their every day lives because of that relationship. nancy powell, we look forward to your confirmation being moved through the senate as quickly as possible. i'll have to turn the gavel over shortly to be at a, and i appreciate appembassador powell understanding of that. >> thank you mr. chairman, let me join you in the concern you expressed about the events in egypt. i was startled, i should say shocked by the arrests and the

detainment of 86 americans involved in attempting to work with citizens of egypt to promote democracy. i think that each one of us over the years who have been involved in delegations going to other countries, to monitor elections or to assist citizens with the national democratic institute and republican institute and various other groups appointed by our officials know how much we cared about those countries and the follow through that we have shown. it's important, as the chairman pointed out, that given the status of the egyptian economy and before that the status of the egyptian people in lacking adequate full supplies, that the united states is generous and eager to be helpful, but we are facing comments from our

colleagues. we are wondering, given the deficit situation we have in our own country, how we can be considering a billion and a half dollars given the situation that we are looking at presently with regard to egypt. so i'm hopeful that as egyptians understand a friendly united states but a unified united states, that there will be at least a turn of thinking. i hope that will occur promptly. but in any event i join the chairman in welcoming you ambassador powell back to the foreign relations committee where you have spent many happy hours i hope. this hearing process offers us an opportunity to evaluate your record but to examine the current state of our ties with india. i start from the premise that enhancing our relationship with india is a strategic and economic importance. india is poised to be an

anchorer of stability now and into the future. the middle class is larger than the entire united states population. it's already the world's second fastest growing economy. the united states and india are working to build a strategic partnership that will benefit both sides and we have an on going cooperation with india on many many fronts. this ensures security in south asia. india and the united states have strong incentives to cooperate on counter terrorism in the region and beyond. we share concerns about the stability of afghanistan and pakistan and the growing military capabilities of china. energy cooperation should be at the top of our agenda. india's energy need is expected

to double by the year 2025. the united states has been an interest in expanding energy cooperation with india, to develop new technologies and address environmental problems and diversify global energy supplies. the united states's own energy problems will be made worse if we do not forge partnerships with india and other nations expanding rapid economic growth. 2008, the united states concluded the civil nuclear cooperation agreement with india. the legislation lifted a moratorium on nuclear trade with india and open toded the door i trade of high technology items such as super computers and fiber optics. this is remaining important to the relationship. but in the narrower context of nuclear trade with india, it has

yet to bare significant fruit. in large measure this stems from the india's adoption for the nuclear damage bill. this effort effectively rules out india understand -- rules o damage and frustrate the united states nuclear industries to play a role in india's expanding nuclear sector. it's inconsistent with the liability regime that the international community is seeking to achieve. to date, in administration has made little progress on the csc with india and i'm hopeful that you will address the obama administration's strategy for advancesing u.s./india cooperation, what high level exchanges have occurred between our governments regarding the status of liability protections

for u.s. nuclear exporters to india? and more broadly what is the current state of our energy dialog with them? i would appreciate your views on going security cooperation in south asia, in light of the intent to reduce u.s. forces in afghanistan and our complex relationship with pakistan, what opportunities exist for u.s./india initiatives designed to combat terrorism, i look forward to your views on how to address these and others. i thank you for being with us and thank the chair. >> thank you. ambassador powell, we welcome your testimony and i don't know if you want to introduce any family members with you, but we welcome that also. >> i'm honored to appear here

today as the nominee as ambassador to india. i'm grateful for the trust and confidence. i would like to thank you for giving me the opportunity to appear before you. if confirmed i look forward to advancing the strategic partnership with india. i would like to say a special thank you to my state department family members and their advice in my preparations for the hearing. i've had the pleasure of serving in india previously from 1992 through 1995 as the council general and minister counselor for political affairs. i enjoyed my time in india where i had the opportunity to participate in the early efforts to expand our bilateral

relations. india is becoming a economic power house, having averaged 7% economic growth over the last decade. lifting 10s of millions its citizens out of poverty. india will be a leading security partner with the united states in the 21st century. and number kinds of interactions is staggering at it's depth. the people to people links are at the heart, along with the three million strong community. at the government to government level, our relations are firmly grounded in a set of shared democratic values and an increasingly shared vision of both the opportunities that can promote those values and the threats that can under mine them. if confirmed i'll be working with an agency team at the

embas especially b especialmbassspeciallmbassy embassy, and among ourp -- our top priorities will be supporting our trade and investment. our bilater al goods and services trade will top over $100 billion in 2012, this represents a stunning quadrupling of trade since wo20. moving them to our 12th trading pard partner from the 25th. i will work to reduce barriers including a bilater al investment treaty and ebs pand ar -- and expand areas where we do business. i although ensure a level

playing field for american companies in the commercial applications of nuclear energy. the u.s. mission in india actively seeks opportunities to keep and create jobs in america. in response to the president's national export initiative, the u.s. mission permits the export of u.s. products, services and technologies, supporting 10s of thousands of jobs in the united states. india with it population of 1.2 billion and its large consumer economy represents a huge market for u.s. manufactured goods, our eximporta exports are growing at -- eximportae exports are expected to double in five years. another priority is our defense operation which is currently is at an all time high. u.s. defense sales reached nearly $8 billion last year and

india holds more military exercises with the united states than with any other country. as stated in the national security's strategy, we see india as a net security provider in the indo-pacific region. as they continue to modernize their armed forces there's additional tunopportunities for to expand our cooperation. i appreciate the congress for expanding defense tie s and no the delivered to congress about the cooperation with india. india is a active member of key international bodies including the u.n. security council, the g-20, the south asian

association for regional cooperation and the world trade organization. in december we held the first ever try lateral meeting. encouraging india's leadership across the asia pacific, it will be a top priority. if confirmed i look forward to expanding o ining our meetings narrowing the differences on issues and working with the government of india to advance international peace and security through common understandings and approaches to strengthening these bodies and the international communities to address the threats that face our world and another will be encouraging india's world in promoting peace in the indian ocean. we share a common interest in supporting a peaceful, prosper

us and democratic indian ocean region. the network of economic, transit and trade and people to people connections across south and central asia is foreseen. and india supports this vision, they have taken steps to support better trade with pakistan. i look forward to increasing cooperation on counter terrorism and global threats. they pose a critical threat to partners like india and u.s. strategic objectives in the region. if confirmed i will work to expand the current level of consultation and coordination on key counter terrorism exchanges and work on expanding cooperation in the areas of n

nonproliferation, if confirmed i'll continue u.s. engagement to advance human rights and freedoms that are constitutionally protected in both of our countries and to work to encourage democratic institutions in countries like afghanistan. if confirmed i look forward to participating in and advancing the u.s. india strategic dialog, as well as the exchanges on more than policy areas including education, agriculture, energy, and development. i hope that we can use this frame work to address issuess mutual concern that will create additional opportunities for our two peoples and eliminate threats to our two democracies, i take seriously my role in the

management of government resources the people and infrastructures and will make sure that it used to enhance u.s. interests. i'll devote my experience to enlarging and expanding our relationship with india, i believe we can continue to convert our vision for a future of peace and prosperity, based on our mutual democratic values through dialog and engagement at all levels of society and government. thank you very much. thank you ambassador powell, appreciate your testimony and i came in a little late, as chairman kerry said i'm supposed to take over for him, let me

just say, offici that in lookinr resume and seeing your long service to our state department, we appreciate your wraareas of service, some of them were difficult parts of the world, and i'm sure that you do it with a great enthusiasm and spirit of public service. so thank you for that. i just returned from recently visiting india for the first time. i was lucky to go with a group, a group headed by senator warner and we had both cochairs of the india caucus, senator warner, is a cochair in the house and joe crowley the congressman from -- from new york from queens is the chair and they had been there a number of times, i think that

you crowley had been there eight times. so i learned a lot from that discussion and one of the things i did was meet with this doctor p acht pachara we had a long discussion about india's needs and demands and the need to address climate change. he expressed his disappointment with the outcome of south africa and a belief that multi-lateral solution is needed there. and he stated he believes that the findings, on that committee that he cochairs, are stronger and that heat waves and other abnormal climate events are increasing in intensity. while meeting with him and other business leaders i stressed the

need to invest in renewable energy and by increased investment and partnership between the u.s. and india, with india in need of increased sources of energy to maintain economic growth, how do you think the u.s. should work to facilitate partnerships between the u.s. and india to promote ren renew able energy? >> senator, i'm happy that you had a opportunity to visit to india if confirmed hope to welcome with you often. >> thank you. >> on the energy side, those that look at india's progress and it potential, almost universally will point to energy as a key issue, and how india is addressing the energy needs not only for its economic development but for advancing the needs of its people for electricity and other sources of energy. i think that we are poised to be very, very good partners on this, we have an energy dialog

as part of the 20 that i mentioned in my testimony. it is done at the highest levels and involves traditional, i look at traditional sources of energy and new technologies. we have a partnership that senator luggar mentioned in his testimony that is looking particularly at innovations in energy. i think given the very strong scientific communities and strong entrepreneurial efforts in both countries, there will have to be support for the to technologies and support for the frame work that allows them to be used. but the spirit of our two countries provide us with opportunities to look at these new sources, the partnership provides funding, aid is working

with what they consider to be an innovation incubator approach to development in india that will allow for programs to be experiments and others to be looked at for plus up by the private sector for use in other parts of the developing world. all of these are very important. obviously the civil nuclear energy piece is another important part of the dialog, of trying to make sure that as india turns to nuclear energy to provide some of it energy resources that it can benefit from the extraordinary technology that u.s. companies bring to nuclear energy to the safety and security standards and to working with those companies with the government of india to find a way for us to have a level playing field for that endeavor. >> ambassador, thank you very much for that answer. and i think one of the