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Politics August 22, 2008, 9:00AM EST

India's Modi Kicking Up U.S. Controversy—Again

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At least there weren't any to speak of last time. Modi was denied a visa in 2005 after being invited to the U.S. by a group of hoteliers, a common occupation for Gujaratis in America. The State Dept. cited a never-before-used law prohibiting the entrance of foreign officials responsible for "severe violations of religious freedom." The State Dept. based its decision on a report by the Indian National Human Rights Commission, said U.S. Ambassador to India David Mulford in 2005. That report stated there was "a comprehensive failure on the part of the state government to control the persistent violation of rights of life, liberty, equality, and dignity of the people of the state." The ambassador added,"I would note also the great respect the U.S. has for the many successful Gujaratis who live and work in the U.S. and the thousands who are issued visas to the U.S. each month."

Many Gujaratis were nonetheless incensed. In India, protests erupted after the visa denial, resulting in the partial burning of a PepsiCo (PEP) plant in Surat and calls for the boycott of American goods. Indian-Americans also protested, and Modi addressed them from India via live videoconference at Madison Square Garden.

Human Rights Groups Lobby

But for India's main opposition party, the BJP, Modi is a star. Should the faction return to power, he could one day be Prime Minister. Then, the U.S. might not have the luxury of preventing visits to America. "In the not-so-distant future, if Modi catapults even one rung higher on the national stage in Indian politics, the U.S. will have to deal with him on a much more public stage," says Daniel Markey, a senior fellow at the Council on Foreign Relations. "That will make it more difficult to take such a principled stand."

Modi isn't at that level yet. While he's BJP's only credible national-level figure, the 2002 riots make him unpalatable to many Indians, and it's unclear if he will soften his nationalist rhetoric.

The Indian Embassy in Washington, which unsuccessfully pushed for the U.S. to allow Modi's 2005 visit, is staying out of the fray this time, and declines to comment on the "private matter" between the U.S. and Modi. The group that invited Modi, the Association of Indian Americans in North America, also refuses to comment.

Still, American groups are lobbying against Modi's potential application. "The U.S. took a principled stand on this issue based on its own commitment to religious freedom," says Meenakshi Ganguly of Human Rights Watch, about the politician's involvement in the 2002 violence. "We hope that the U.S. will continue to do so." Felice Gaer, who chairs the U.S. Commission on International Religious Freedom, a government advisory agency, adds, "We have not seen changes that would warrant a policy reversal."

Many Gujaratis remain upset that Modi has been denied entry, but aren't otherwise worried. "Gujaratis are aggressive," explains Paru Jaykrishna, a 65-year-old chemical exporter from Mehsana, who was president of the Gujarat Chamber of Commerce until last month. "There may be a political reaction, but it's not really an economic issue."

Delevingne is a BusinessWeek reporter in New York.

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