India-US Relationship

In a recent meeting of the Indian PM and US President on the sidelines of the Quad meeting, the India-US relationship was reaffirmed as a cornerstone for global peace, prosperity, and security.

About India-US Relations

• Basis: The strategic partnership between the United States and India is based on a mutual dedication to democracy and preserving the rules-based international order. 
• Background & Evolution:
  • 1949: Prime Minister Pandit Jawaharlal Nehru meets with US 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 US.
  • 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 US-India Strategic Dialogue was convened.
  • 2016: Prime Minister Narendra Modi addressed the US Congress, emphasising overcoming historical hesitations.
  • 2023: The US hosts a State Visit for Indian PM Narendra Modi.
• Strengthening Ties: 
  • Dialogue Mechanism: Both governments have established over 50 bilateral dialogue mechanisms to facilitate effective communication and collaboration. 
  • Collaboration in Multiple Areas: Despite the challenges posed by the COVID-19 pandemic, India and the US have actively cooperated across multiple areas, such as defence, security, healthcare, trade, economy, science and technology, etc.
• Reduction of Past Constraints: Historical issues such as concerns over Jammu and Kashmir and the relationship dynamics with Pakistan (de-hyphenation) have been effectively managed.

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Key Outcomes of India-US meet

• Strengthening Strategic Partnership: Both leaders reaffirmed the robust global strategic partnership, emphasizing shared democratic values, and alignment in areas such as defense, technology, and clean energy​.
• Support for India’s Global Role: President Biden praised India’s leadership in the G20 and Global South and reaffirmed U.S. support for India’s bid for permanent membership in the UN Security Council.
• Defense and Aerospace Cooperation: Progress in defense collaboration was highlighted, including the procurement of MQ-9B drones and the establishment of a Maintenance, Repair, and Overhaul (MRO) facility for C-130J aircraft​.
• Technology and Space: Success of the iCET initiative was celebrated, with commitments to enhance collaboration in artificial intelligence, quantum technology, and joint NASA-ISRO research​.
• IPEF Agreement: India signed the US-led 14-member Indo-Pacific Economic Framework for Prosperity (IPEF) bloc’s agreements on a clean and fair economy.
• Clean Energy Collaboration: The leaders endorsed efforts to strengthen clean energy supply chains, unlock $1 billion in financing for renewable projects, and support green technology.
• Health and Economic Initiatives: A new U.S.-India Drug Policy Framework was launched to combat synthetic drug trafficking, along with initiatives in cancer research, SME cooperation, and climate-smart agricultural practices.
• Return of Antiquities: The U.S. returned 297 stolen or trafficked antiquities to India as part of their Cultural Property Agreement​.

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Significance of India-US Relationship

• Defence Cooperation
  • Foundational Defence Agreements: India and the U.S. have signed key defence pacts, including LEMOA, COMCASA, and BECA. These agreements enhance interoperability and secure military communication.
  • Defense Technology and Trade: India procured MQ-9B SeaGuardian drones, and under the Defense Industrial Cooperation Roadmap, the U.S. is co-producing GE F414 jet engines in India.
• Economic Engagement
  • Bilateral Trade: The U.S. is India’s second largest trading partner, with trade in goods and services crossing $191 billion in 2022. The U.S. is a major market for Indian exports, particularly in sectors like pharmaceuticals and IT services.
  • Investment Initiatives: The U.S. is among the top investors in India, with $6.04 billion in Foreign Direct Investment (FDI) during 2022-23. 
• Strategic Underpinnings
  • Global Diplomacy: India and the U.S. work together at multilateral institutions like the QUAD, I2U2, advocating for reforms at the United Nations Security Council. 
    • The U.S. supports India’s candidacy for permanent membership​.
• Energy Partnership / Climate & Clean Energy Agenda 2030
  • Strategic Clean Energy Partnership (SCEP): Established in 2021, this partnership aims to expand renewable energy cooperation, focusing on solar, wind, and nuclear energy. 
    • The U.S.-India Climate and Clean Energy Agenda 2030 targets clean energy technology development​.
  • Joint Clean Energy Projects: The U.S. International Development Finance Corporation (DFC) has invested in India’s solar energy sector, with loans to Indian companies​.
  • Critical Minerals Partnership: Both countries cooperate on securing supply chains for critical minerals, essential for renewable energy technologies​.
• Education & Cultural Cooperation
  • Fulbright-Nehru Program: This program facilitates academic exchanges, enhancing educational cooperation between Indian and American scholars.
  • Global Initiative of Academic Networks (GIAN): Through this initiative, U.S. faculty members teach in Indian universities, boosting higher education collaborations​.
  • Cultural Property Agreement (CPA): Signed in 2024, the CPA aims to prevent the illicit trafficking of cultural artefacts and ensure the repatriation of Indian antiquities.
• Diaspora / People-to-People Ties
• • Indian Diaspora in the U.S.: Over 4.4 million people of Indian origin live in the U.S., Programs like the U.S.-India Knowledge Initiative and cultural exchanges foster deep connections, further strengthening bilateral relations​.

Challenges in the India-US Relations

• Geopolitical Divergences:
  • Russia-Ukraine War: India’s neutrality and its abstention from U.N. votes condemning Russia’s invasion of Ukraine have caused friction with the U.S., which emphasises international law and humanitarian concerns.
  • Oil Procurement from Russia: India’s increasing imports of discounted Russian oil during the Ukraine crisis have raised questions about the balance between India’s U.S. partnership and its reliance on Russia​.
• Trade Protectionism:
  • Barriers to U.S. Trade: The U.S. has criticised India’s protectionist policies, such as high tariffs and entry barriers for foreign investments, which limit U.S. market access.
  • Generalised System of Preferences (GSP): The U.S. revoked India’s GSP benefits in 2019 due to trade protectionism, affecting bilateral trade.
• Technology and Export Controls:
  • Export Controls: U.S. restrictions on technology transfers to India, stemming from India’s 1998 nuclear tests, have slowed collaboration in critical sectors like defence and emerging technologies.
  • Indo-Pacific Economic Framework (IPEF): While India participates in several pillars of the IPEF, it remains hesitant to join the trade pillar due to concerns over environmental and labor commitments.
• Human Rights and Democracy Concerns: The U.S. has raised concerns about India’s human rights record, including issues related to press freedom, treatment of minorities, and democratic backsliding.
• H-1B Visa Dominance: Indian nationals dominate the U.S. H-1B visa pool, creating potential tension if U.S. unemployment rises, particularly in the service sector.
• Strategic Convergence and China:
  • China Factor: Both countries are aligned on countering China’s aggressive behavior, particularly along India’s borders and in the Indo-Pacific. However, India’s multipolar approach sometimes diverges from U.S. strategies​.
  • Multipolarity vs. U.S. Primacy: India’s desire for a multipolar world, where it plays a more significant independent role, sometimes conflicts with U.S. efforts to maintain global leadership. India’s participation in forums like BRICS and its non-alignment stance in some global conflicts occasionally cause friction​
• Espionage and Covert Operations:
  • Khalistan Movement: The activities of pro-Khalistan groups in the U.S. have created tensions. India’s aggressive stance towards these groups, coupled with U.S. concerns over civil liberties, has led to diplomatic strains​.
  • Alleged Plots: The discovery of an alleged plot involving Indian officials targeting a U.S. citizen, along with past espionage accusations, has created distrust between the nations​

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Way Forward

• Address Concerns: India and the U.S. should focus on resolving diplomatic tensions by addressing concerns over democracy and alleged plots. 
• 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 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 recently: 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.