India-US Relations: Fifth Annual India-U.S. 2+2 Ministerial Dialogue

Context:

• This article is based on the news “China conduct, Canada row, Gaza war: India-US 2+2 ministerial dialogue ‘substantive” Which was published in the Indian Express. The India-US ‘2+2’ foreign and defense ministerial dialogue was held in New Delhi. 

Evolution of India-US Relations

• 1949: Prime Minister Pandit Jawaharlal Nehru meets with U.S. president Harry S. Truman on a multi-week tour of the United States.
• 1998: India conducted a series of nuclear tests, which led to a period of strained relations with the United States.
• 2008: The NSG granted a waiver to the Indo-US nuclear deal, effectively ending India’s isolation from the nuclear mainstream and technology denial regime. This waiver allowed for increased collaboration in nuclear technology and trade.
• 2010: The first U.S.-India Strategic Dialogue was convened.
• 2016: Prime Minister Narendra Modi addressed the US Congress, emphasizing the overcoming of historical hesitations.
• 2023: USA hosts State Visit for PM Narendra Modi.

What is the significance of India-US relations?

• Strategic Convergence, the China challenge: While the India–US partnership involves far broader and deeper issues, among the predominant, shared concerns is China’s increasingly aggressive behavior, in particular along the disputed China– India border.
• Defense Cooperation:  India-US defense cooperation is based on “New Framework for India-US Defence Cooperation”, which was renewed for ten years in 2015. 
  • In 2016, the defense relationship was designated as a Major Defence Partnership (MDP). 
  • In 2018, India was moved into the Tier-1 of the US Department of Commerce’s Strategic Trade Authorization license exception.
• India-US Trade & Economic Relations: USA is India’s largest trading partner with bilateral trade in goods and services crossing US$ 191 billion in 2022. 
  • In 2022 bilateral merchandise trade reached US$ 133 billion and services trade reached around US$ 58 billion (Source: US Census data).
  • During 2022-23, US was the third largest source of FDI into India with inflows of US$ 6.04 billion accounting for almost 9% of total FDI equity inflows. 
• Energy Partnership/ Climate & Clean Energy Agenda 2030:  In April 2021 an India-U.S. Climate and Clean Energy Agenda 2030 Partnership was launched, with two tracks i.e. Strategic Clean Energy Partnership (SCEP); and Climate Action and Finance Mobilization Dialogue (CAFMD)
• S&T and Space Cooperation: The Science and Technology Cooperation Agreement signed in October 2005, was renewed for 10 years in September 2019. The Indo-US Science and Technology Forum (IUSSTF), promotes cooperation in S & T and innovation.
  • For Example: ISRO and NASA are developing a microwave remote sensing satellite for Earth observation, NASA-ISRO Synthetic Aperture Radar (NISAR)
• Education & Cultural Cooperation: Under the Fulbright-Nehru binational Program, both countries support Fulbright-Nehru scholarships and grants to US and Indian scholars, professionals and students. 
  • The Global Initiative of Academic Networks (GIAN) was launched by India in 2015 to facilitate visits by 1000 U.S. teachers annually to teach in India. GIAN has been extended to other countries also
• Diaspora/People-to-People ties: About 4.4 million Indian Americans/Indian origin people reside in the US. Persons of Indian origin (3.18 million) constitute the third largest Asian ethnic group in the US. 
  •  There are five persons of Indian origin in the U.S. Congress. 

Challenges in the India-US Relations

• Different Stand on Various geopolitical issues: In early 2022, India’s neutrality on Russia’s aggression against Ukraine—and India’s abstention on all U.N. votes condemning or criticizing that invasion—met with dismay among some Members of US Congress.
• Trade Protectionism: The United States is concerned about India’s turn towards protectionism.
  • For example, India makes up only two percent of the United States’ merchandise trade due to policies that protect domestic industry from foreign competition. 
• Indian Dominance in U.S. H-1B Visas and Emerging Tensions in the Service Sector: Indian citizens are by far the largest skilled migrant group in the U.S., accounting for over one-third of U.S. H-1B visas issued in recent years. 
• • This could become a potent issue if employment growth remains weak in the U.S. 
• US Criticism of India’s Democracy and Human Rights Record: US organizations and foundations, release reports questioning India’s democratic discourse, press and religious freedom, and treatment of minorities. 
  • In an annual report on human rights practices in India, the US State Department has highlighted challenges to freedom of expression, cases of arbitrary arrests and detentions, extrajudicial killings in 2022.

Way Forward for the India-US Relations

• India’s Balancing Act Between US and Developing Nations: The United States  pays close attention to India’s leadership in multilateral forums, such as the G20 and the SCO. India can use its leadership positions in both to act as a bridge between the West and developing nations.
• Enhancing Counterterrorism Cooperation for Regional Stability: Pursue greater cooperation on counterterrorism, including coordinating strategies for managing a Taliban-led Afghanistan and leading multilateral efforts to apply pressure on the Pakistani military-intelligence complex to abandon support for terrorist groups.
• Cooperation in emerging technologies and artificial intelligence (AI): Enhance cooperation in emerging technologies and artificial intelligence (AI) as data regulation, information sharing, and privacy protection become increasingly salient issues crucial to the preservation of national security.
• Advancing Multilateral Coordination: Strengthen coordination multilaterally and on international issues, including prioritizing two multilateral strategic dialogues that have gained prominence in recent years: the Quad, and the West Asian Quad or I2U2.
• Boosting Economic Engagement: Increasing investment and trade flows between India and the US is crucial for economic growth, market access, and technological cooperation. The India-US ICET initiative is a positive step.

Know more about the India-US Bilateral Relations here. 

Conclusion:

The evolving India-US relations holds significant importance in shaping the global order of the 21st century. To fully unlock the potential of this partnership, both governments must focus on reducing bilateral and multilateral bottlenecks and embracing diplomatic flexibility and exploring innovative approaches.