Name: Aastha Rawat

Class: SYBA
Division: A
Roll No.: 20
Year: 2023-24
Semester: IV
Subject: Foundation Course
Mobile Number: 9082825252
Email Id: aastharrawat@gmail.com
India's foreign policy greatly involves its engagements on the global stage, and a key element of
this international diplomacy is the relationship with the United States. Over the years, the
India-U.S. partnership has evolved into a comprehensive engagement spanning across various
domains, reflecting shared values and mutual interests.

Trade and economic cooperation form a pivotal aspect of this relationship. The two nations have
forged strong ties, collaborating across sectors such as information technology, pharmaceuticals,
and energy. Economic engagements have not only bolstered bilateral trade but have also
contributed to the growth and development of both economies.

Defense and security cooperation have witnessed a significant upswing. India has emerged as a
major buyer of U.S. defense equipment, and joint military exercises and intelligence-sharing
initiatives underscore the commitment to ensuring regional and global security. Common
concerns, including counterterrorism efforts and regional stability, have further deepened the
strategic collaboration between the two nations.

In the realm of education, science, and technology, India and the U.S. have fostered partnerships
aimed at knowledge exchange and research collaboration. This not only enhances the educational
and scientific capabilities of both countries but also promotes innovation and technological
advancements.

Civil nuclear energy cooperation is another cornerstone of the relationship. Agreements and
collaborations in this sector reflect a shared commitment to sustainable and clean energy
solutions, contributing to global efforts to address climate change and ensure energy security.

Space technology and applications have also emerged as a collaborative frontier. Joint projects
and initiatives in space exploration and satellite technology showcase the shared aspirations for
advancements in science and technology, with potential benefits for both nations.

The U.S.-India strategic partnership is grounded in shared values, including a commitment to

democracy and a dedication to upholding the rules-based international system. Both countries
actively cooperate in promoting global security, stability, and economic prosperity through
avenues such as trade, investment, and enhanced connectivity.
As the dynamics of international relations continue to evolve, the India-U.S. relationship stands
as a testament to the diplomatic efforts aimed at building a robust and mutually beneficial
partnership that extends beyond geopolitical considerations to encompass shared values and
common aspirations.

The foundation of India-US bilateral relations rests upon several pivotal elements, encompassing
the expanding market size of the Indian economy, the growing influence of the Indian diaspora in
American business and politics, and a shared recognition of the imperative to address Chinese
aggression. As the United States deepens its involvement in the Indo-Pacific region and India
consolidates its regional influence, the collaboration between these democratic powerhouses
possesses the capacity to dynamically redefine the geopolitical landscape.

The synergy between their strategic interests not only fosters mutual economic growth but also
reinforces their shared commitment to democratic values and stability in the region. This
evolving partnership stands as a testament to the intricate interplay of economic, political, and
strategic factors, shaping a relationship that has the potential to significantly influence the global
balance of power.

Economic Relations

The bilateral trade relationship between India and the United States has undergone a remarkable
expansion in recent years, solidifying their status as key economic partners. The success of this
trading partnership is evidenced by a substantial 72% increase in bilateral trade between the two
nations from 2017-18 to 2022-23. During the 2022-23 fiscal year, the USA emerged as the top
destination for Indian exports globally and the third-largest source of India's imports.
Specifically, India's exports to the USA amounted to $78.5 billion, while imports from the USA
reached $50.2 billion.

Furthermore, the United States holds the position of being the third-largest source of Foreign
Direct Investment (FDI) in India, contributing significantly to the country's economic landscape.
With equity investment totaling $59.1 billion from April 2000 to December 2022, the US
represents 9.45% of India's cumulative FDI inflows. In the fiscal year 2021-22, the US accounted
for 18% of the total gross FDI inflows into India, ranking second only to Singapore at 27%.
Key sectors attracting substantial FDI equity inflow from the US include computer software and
hardware, the services sector, and the automobile industry. Among Indian states, Gujarat,
Karnataka, and Delhi have emerged as the top recipients of FDI from the USA.

To further enhance economic and trade cooperation, both nations have established multiple
dialogue mechanisms. These encompass the Ministerial-level Economic and Financial
Partnership, the Ministerial Trade Policy Forum established in 2005, the bilateral India-US
CEO's Forum (established in 2005), encouraging private sector involvement in discussions on
trade and investment issues, and the Indo-Pacific Economic Framework, which India joined in
May 2022.

International Cooperation

Additionally, the bilateral Investment Initiative, initiated in 2014, focuses on facilitating foreign
direct investment, portfolio investment, capital market development, and infrastructure
financing. The US-India Infrastructure Collaboration Platform, established in 2014, concentrates
on deploying advanced US technologies to meet India's infrastructure requirements. These
initiatives underscore the commitment of both nations to strengthening bilateral trade ties and
fostering deeper economic collaboration.
India and the United States share a close collaborative relationship within various multilateral
organizations, including the United Nations, G-20, Association of Southeast Asian Nations
(ASEAN) Regional Forum, International Monetary Fund, World Bank, and World Trade
Organization. India's induction into the UN Security Council for a two-year term starting in 2021
was met with approval from the United States, which advocates for a reformed UN Security
Council incorporating India as a permanent member.

India holds the status of an ASEAN dialogue partner, collaborates as an Organization for
Economic Cooperation and Development partner, and serves as an observer to the Organization
of American States. The collaborative efforts extend to the Quad, where, alongside Australia and
Japan, the United States and India work collectively to champion a free and open Indo-Pacific,
delivering tangible benefits to the region. An illustrative example of this cooperation is the
completion of recruitment for the inaugural Quad Fellows in June 2022. This initiative provides
a unique opportunity for 100 students—25 each from Australia, India, Japan, and the United
States—to pursue master's or doctoral studies in STEM fields in the United States.

India is actively engaged with the United States and ten other nations through the Indo-Pacific
Economic Framework for Prosperity (IPEF), aimed at fostering more connected, resilient, clean,
and fair economies. Additionally, as a member of the Indian Ocean Rim Association (IORA),
India collaborates with the United States, which holds the position of a dialogue partner.

In 2021, the United States officially joined the International Solar Alliance, headquartered in
India, signifying a commitment to advancing solar energy initiatives. Furthermore, in 2022,
Samantha Power, Administrator of the United States Agency for International Development
(USAID), assumed the role of Co-chair of the Governing Council of the Coalition for Disaster
Resilient Infrastructure (CDRI), where India holds a permanent co-chair position. These
developments underscore the shared commitment of India and the United States to collaborating
on global issues, ranging from sustainable energy to disaster resilience.

Defence Cooperation

India and the United States have solidified their defense partnership through the signing of all
four foundational agreements. Commencing with the Logistics Exchange Memorandum of
Agreement (LEMOA) in 2016, followed by the Communications Compatibility and Security
Agreement (COMCASA) in 2018, and culminating with the Basic Exchange and Cooperation
Agreement for Geo-Spatial cooperation (BECA) in 2020, these agreements enhance military
interoperability and cooperation. The long-standing General Security of Military Information
Agreement (GSOMIA) was not only signed years ago but saw an extension in the form of the
Industrial Security Annex (ISA) in 2019.

India, which faced limitations in accessing US weapons during the Cold War era, has
significantly transformed its military capabilities by procuring USD 20 billion worth of arms in
the past two decades. This shift not only strengthens India's defense capabilities but also aligns
with the US interest in aiding India to reduce its traditional reliance on Russia for military
supplies.
The armed forces of India and the United States engage in extensive bilateral military exercises,
such as Yuddha Abyas and Vajra Prahar. Additionally, participation in minilateral exercises,
particularly within the Quad Forum, including the Malabar exercises, underscores the
commitment to regional security and cooperation.

Beyond the Quad, another noteworthy development in the Middle East is the emergence of I2U2,
an alliance involving India, Israel, UAE, and the United States. Often dubbed as the new Quad,
this grouping signals a deepening of strategic ties, fostering collaborative efforts in the realms of
defense and security among these nations. The evolving dynamics of I2U2 highlight the broader
scope of India's defense engagements and its growing role in shaping regional security
architectures.

Space, Science and Technology

The collaboration between the Indian Space Research Organization (ISRO) and the US National
Aeronautics and Space Administration (NASA) has reached significant milestones. Both
agencies are actively engaged in the development of a microwave remote sensing satellite,
known as the NASA-ISRO Synthetic Aperture Radar (NISAR), designed for Earth observation.
This joint endeavor underscores the shared commitment to advancing space exploration and
enhancing our understanding of the Earth's dynamics.

In June 2023, ISRO took a notable step by signing the Artemis Accords with NASA. This
agreement reflects a joint commitment to participate in the peaceful and sustainable civil
exploration of outer space, emphasizing collaboration in the pursuit of scientific knowledge and
the responsible use of space resources.

A further dimension of technological collaboration is evident in the Indo-US Cooperation in

Emerging Technologies (iCET). Launched in January 2023, iCET is a joint initiative led by the
National Security Advisors of both the United States and India. This initiative aims to foster
cooperation and innovation in key technology domains, including artificial intelligence (AI),
quantum computing, telecommunications, space exploration, biotechnology, semiconductors, and
defense. iCET signifies a strategic partnership aimed at pushing the boundaries of technological
advancement while addressing shared challenges in the contemporary digital era.
Major Challenges between India and the US:

One prominent challenge in the India-US relationship lies in the divergence of perspectives on
foreign policy. While the Indian elite historically viewed the world through the lens of
non-alignment, the US has prioritized alliance relationships since the Second World War. India's
policy of nonalignment, particularly during the Cold War, has been a consistent point of concern
for the US. Instances such as the Indian military vetoing the US request to dispatch troops to
Afghanistan after the 9/11 attacks and India withholding military support during the US invasion
of Iraq in 2003 highlight the differences in strategic alignment. Presently, India's refusal to align
with the American stance on the Russian-Ukraine war and its continued import of Russian oil
have led to criticisms, with pro-US voices urging India to align itself with what they perceive as
the "right side of history."

Another source of tension arises from India's engagement with US adversaries. India's criticism
of the US decision to block Iranian and Venezuelan oil from the open market, coupled with
active efforts to bring Iran into the Shanghai Cooperation Organization (SCO), adds complexity
to the bilateral relationship.

The US has also expressed criticism of India's democratic practices. Various US organizations
and foundations, often with tacit support from some Congress members, release reports
questioning the state of democratic discourse, press freedom, religious freedom, and minority
conditions in India. Reports such as the International Religious Freedom Report 2023 and the
Human Rights Report on India 2021 by the US State Department contribute to this contentious
aspect of bilateral ties.

Economic tensions further strain the relationship. The Atmanirbhar Bharat Campaign,
emphasizing self-reliance, has fueled perceptions in the US that India is becoming an
increasingly protectionist closed-market economy. The withdrawal of duty-free benefits to Indian
exporters under the Generalized System of Preferences (GSP) program effective from June 2019
has impacted sectors like pharmaceuticals, textiles, agriculture, and automotive parts,
contributing to economic frictions between the two nations. Addressing these challenges requires
ongoing diplomatic efforts and a nuanced understanding of each other's perspectives and
priorities.

Way Forward

The partnership between India and the United States stands as a critical pillar in ensuring a free,
open, and rules-bound Indo-Pacific region. This collaboration is integral to maintaining regional
stability and promoting adherence to established norms. Beyond regional dynamics, the
unparalleled demographic dividend that India presents offers immense opportunities for both US
and Indian firms. This demographic advantage serves as a catalyst for technology transfer,
manufacturing collaborations, and expanded trade and investment opportunities. As India
emerges as a leading player on the international stage, the global system undergoes an
unprecedented transformation. In this evolving landscape, India is poised to leverage its present
situation to explore and capitalize on opportunities that align with its vital interests. The strategic
partnership between India and the US thus becomes not only a means of fostering bilateral
cooperation but also a key driver for both nations to navigate and contribute to the evolving
dynamics of the international system.
Resources:

https://www.drishtiias.com/daily-updates/daily-news-analysis/india-us-relations-5#:~:text=Econo
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https://byjus.com/free-ias-prep/india-united-states-relations/

https://www.csis.org/analysis/2023-roundup-small-steps-and-big-shifts-us-india-relations

https://www.cfr.org/timeline/us-india-relations

https://www.investindia.gov.in/team-india-blogs/shaping-future-evolving-india-us-bilateral-relatio
ns#:~:text=Bilateral%20Trade&text=During%202022%2D23%2C%20the%20USA,the%20USA
%20were%20%24%2050.2%20billion.

https://www.state.gov/u-s-relations-with-india/