US-India relations have been on an upward arc in recent years, marked by growing cooperation in various fields such as defense, trade, and technology. Both countries have strengthened their ties through regular diplomatic dialogues, joint military exercises, and shared interests in global issues like climate change and security. The relationship has evolved from mere partnership to a strategic alliance, with both nations recognizing the importance of working together to address common challenges and promote stability in the Indo-Pacific region. This deepening bond reflects the mutual respect and shared values that underpin US-India relations today.
Tags: GS – 2, IR- Bilateral Groupings & Agreements– Effect of Policies & Politics of Countries on India’s Interests– Indian Diaspora– Groupings & Agreements Involving India
Context:
- India has successfully deepened its ties with the US across trade, technology, and security under both Republican and Democratic administrations, unlike many American allies.
- India must leverage its strategic advantages—engagement with US policymakers, strong diaspora ties, and its role in the Indo-Pacific—to enhance and adapt this crucial relationship in a multipolar world.
Evolution of India-US Relations:
- From Estrangement to Engagement – The Cold War Thaw:
- During the Cold War, India and the US were on opposing sides, with India pursuing non-alignment and Pakistan aligning with the US.
- Relations began to improve in the 1990s with India’s economic liberalisation and the end of the Cold War.
- President Bill Clinton’s 2000 visit marked a thaw, initiating strategic dialogues and economic cooperation.
- The 2004 Next Steps in Strategic Partnership (NSSP) solidified growing ties.
- Nuclear Breakthrough – A New Era of Trust:
- The 2008 Civil Nuclear Agreement was a key moment, ending India’s nuclear isolation and integrating it into the global nuclear order.
- This agreement led to enhanced cooperation in defence and high-technology sectors and demonstrated US commitment to India’s global stature.
- Defence Ties – From Buyer to Partner:
- Since the early 2000s, defence cooperation has surged. By 2016, the US designated India as a Major Defense Partner.
- The 2018 Strategic Trade Authorization tier 1 status allowed India licence-free access to military technologies.
- Foundational agreements like LEMOA (2016), COMCASA (2018), and BECA (2020) facilitated deeper military ties, supported by joint exercises and the 2+2 Ministerial Dialogue.
- Economic Synergy – Beyond Trade to Strategic Cooperation:
- Bilateral trade reached USD 118.28 billion in 2023-24, with the US becoming India’s largest trading partner and major FDI source.
- Cooperation has expanded into clean energy, digital economy, and healthcare, highlighted by initiatives like the US-India Strategic Clean Energy Partnership (SCEP) and Covid-19 vaccine collaboration.
- Collaborating in the Digital Age:
- Technology cooperation is a cornerstone, with forums established for AI, quantum computing, and 5G collaboration.
- The US-India Science and Technology Endowment Fund (2009) has fostered innovation, with recent initiatives like the US-India Artificial Intelligence Initiative and Critical and Emerging Technology Initiative (iCET) launched in 2022.
- Geopolitical Alignment – Partners in the Indo-Pacific:
- The rise of China has aligned India and the US strategically, reflected in the revived Quad (India, US, Japan, Australia) and India’s inclusion in the US Indo-Pacific strategy.
- Joint statements and initiatives like the Supply Chain Resilience Initiative underscore the depth of geopolitical cooperation.
Major Areas of Friction in India-US Relations:
- Trade Tensions – Navigating Economic Choppy Waters:
- Economic frictions include India’s trade surplus (USD 36.74 billion in 2023-24), market access barriers, and intellectual property rights concerns.
- The US criticises India’s data localization policies and e-commerce regulations; India objects to US tariffs on steel and aluminium.
- The 2019 removal of India from the Generalised System of Preferences (GSP) and ongoing WTO disagreements over agricultural subsidies further complicate trade relations.
- Strategic Autonomy vs. Alliance Expectations:
- India’s strategic autonomy often clashes with US expectations, particularly regarding the Russia-Ukraine conflict, where India has not condemned Russia and continues to buy Russian military equipment and oil.
- The threat of CAATSA sanctions and India’s participation in groupings like BRICS and SCO, which include US adversaries, create friction.
- Technology Transfer and Defense Cooperation:
- Despite improved defence ties, technology transfer and joint production issues persist due to US export control regulations and delays in implementing agreements like COMCASA and BECA.
- The Defense Technology and Trade Initiative (DTTI) aims to address these issues, but progress has been slow.
- Human Rights and Democratic Values:
- US concerns over human rights issues in India, including religious freedom and treatment of minorities, occasionally strain relations.
- Recommendations from the US Commission on International Religious Freedom to designate India as a “country of particular concern” highlight these tensions.
- India views such criticisms as interference in its internal affairs, and balancing strategic partnership with values-based diplomacy remains challenging.
- Visa and Immigration:
- Changes to H-1B visa rules and the backlog for employment-based green cards disproportionately affecting Indians cause concern.
- Over 1 million Indians are waiting for highly skilled immigrant visas, creating friction in immigration policies.
- Climate Change and Energy:
- Differences persist over climate action, with the US pushing for more ambitious emission reduction targets and India emphasising development needs and financial support from developed nations.
- Disagreements include carbon border taxes and the phasing out of coal.
- Intellectual Property Rights:
- Intellectual property rights (IPR) issues include US concerns over India’s patent laws, copyright piracy, and trademark infringement.
- India’s use of compulsory licensing for pharmaceuticals and stance on agricultural patents have been points of contention.
- Despite efforts to strengthen its IPR regime, differences in innovation and technology access persist.
How Can India Further Enhance Its Relations with the US?
- “Make in India” Meets “Buy American”:
- India can propose joint manufacturing ventures in sectors like electronics, pharmaceuticals, and defence, aligning with both countries’ economic goals.
- Implementing a fast-track approval process and creating special economic zones for US companies could enhance attractiveness.
- This initiative could address US job creation concerns and boost India’s manufacturing capabilities.
- Green Energy Corridor:
- India can propose a bilateral Green Energy Corridor for developing renewable energy technologies, including solar, wind, and hydrogen.
- Collaborative research, manufacturing ventures, and sustainable urban development projects could be part of this initiative.
- Leveraging US expertise and India’s scale could accelerate clean energy transitions and offer preferential market access for green technologies.
- Digital Democracy Initiative:
- Initiating a Digital Democracy Initiative with the US could focus on shared norms and technologies for a secure internet.
- Joint efforts in cybersecurity, disinformation countermeasures, and digital literacy, as well as privacy-preserving technologies, could be key components.
- This initiative could align digital governance approaches and address US tech policy concerns while bridging the digital divide.
- Skills Passport Program:
- India can propose a Skills Passport Program with standardised skill certification, streamlined visa processes, and joint training programs.
- Targeting high-demand sectors like healthcare, IT, and advanced manufacturing could be beneficial.
- The program could address labour shortages, brain drain concerns, and facilitate circular migration.
- Strategic Resource Partnership:
- India can become a key partner in securing and diversifying US supply chains for critical resources.
- This could involve joint exploration, production of rare earth elements, research on alternative materials, and stockpiling strategic resources.
- Fast-track environmental clearances and fiscal incentives could accelerate this partnership.
- Pandemic Preparedness and Beyond:
- Building on Covid-19 cooperation, India can propose a Health Security Alliance for joint vaccine development, research on infectious diseases, and early warning systems.
- Extending to telemedicine, medical device development, and health data analytics could create a robust partnership.
- Reciprocal recognition of medical qualifications and streamlined research approval could strengthen the alliance.
- Space Commercialization Consortium:
- India can initiate a Space Commercialization Consortium with the US for joint development of space technologies and services.
- Collaborative projects could include small satellite development, space-based internet, and space tourism technologies.
- Combining ISRO’s cost-effective approach with NASA’s capabilities and offering preferential launch services could accelerate commercialization.
- AgriTech Innovation Hub:
- Establishing an AgriTech Innovation Hub with the US could focus on advanced agricultural technologies, such as climate-resilient crops and precision farming.
- Joint research and AI-driven pest management systems, along with field testing and farmer exchange programs, could enhance food security.
- Leveraging US research capabilities and India’s agro-climatic diversity could drive innovations in agriculture.
UPSC Civil Services Examination, Previous Year Question (PYQ)
Mains
Q:1 ‘What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem and ambitions’. Explain with suitable examples. (2019)
Source: IE
FAQs
Q: What does it mean when people say US-India relations are on an “upward arc”?
- Answer: Saying US-India relations are on an “upward arc” means that the relationship between the United States and India is improving and growing stronger. Both countries are working more closely together on various issues, from trade and defense to technology and global security.
Q: Why are US-India relations important?
- Answer: US-India relations are important because both countries are influential on the global stage. A strong partnership helps in addressing common challenges like terrorism, climate change, and economic growth. It also opens up opportunities for trade, investment, and cultural exchange.
Q: What areas are seeing the most improvement in US-India relations?
- Answer: The most significant improvements are seen in defense cooperation, trade agreements, and technology sharing. The two countries are also collaborating more on clean energy, healthcare, and space exploration, which are vital for their respective developments.
Q: How do better US-India relations affect ordinary people in both countries?
- Answer: Improved relations can lead to more job opportunities, better access to technology, and increased educational exchanges. For example, Indian students may find it easier to study in the US, and both countries’ businesses might benefit from easier trade rules and investment opportunities.
Q: What challenges could impact the upward trend in US-India relations?
- Answer: Challenges like differing views on global issues, trade disputes, or geopolitical tensions in the region could impact the upward trend. However, both countries are committed to resolving differences through dialogue and cooperation, which helps maintain the positive momentum.
To get free counseling/support on UPSC preparation from expert mentors please call 9773890604
- Join our Main Telegram Channel and access PYQs, Current Affairs and UPSC Guidance for free – Edukemy for IAS
- Learn Economy for free- Economy for UPSC
- Learn CSAT – CSAT for UPSC
- Mains Answer Writing Practice-Mains Answer Writing
- For UPSC Prelims Resources, Click here
