India-United States Relations

The India-United States share Relations in the diplomatic, economic, strategic, and cultural ties. Recently, The launch of the revamped U.S.-India Strategic Clean Energy Partnership (SCEP) on September 9th highlights the evolving nature of this relationship, particularly in areas of strategic cooperation and collaboration.

‘India-United States Relations’ has been an important topic from the GS Paper II, International Relations perspective of the IAS Exam. In this article, we have covered the Indian and United States (US) Relations in Detail.

Let’s dive right in.

Latest Developments in India-US Relations

India and the United States continue to strengthen their strategic partnership based on shared values of democracy and commitment to the rules-based international system. The following are the recent developments in India-US Relations:

1. Economic Relations (2022-23):
   • The U.S. emerged as India’s largest trading partner in 2022-23, with bilateral trade reaching USD 128.55 billion, up by 7.65% from the previous year.
   • India’s exports to the U.S. increased by 2.81% to USD 78.31 billion, while imports grew by about 16% to USD 50.24 billion, indicating robust economic engagement.
2. International Cooperation:
   • India and the U.S. collaborate closely at multilateral forums such as the United Nations, G-20, and ASEAN, with the U.S. supporting India’s participation in initiatives like the UN Security Council.
   • India is among twelve countries partnering with the U.S. on the Indo-Pacific Economic Framework for Prosperity (IPEF), emphasizing joint efforts to promote economic development and connectivity in the region.
   • The U.S.’s involvement in the International Solar Alliance headquartered in India and the participation of the United States Agency for International Development (USAID) demonstrate deepening cooperation in renewable energy and development assistance.
3. Defense Cooperation:
   • India has signed all four foundational agreements with the U.S., including the Basic Exchange and Cooperation Agreement for Geo-Spatial cooperation (BECA) in 2020, enhancing defense cooperation significantly.
   • Bilateral military exercises like Yuddha Abyas and participation in multilateral exercises like Malabar highlight the growing interoperability and partnership between the armed forces of both nations.
   • The emergence of groupings like I2U2, involving India, Israel, UAE, and the U.S., signifies the evolving dynamics of defense cooperation in the Middle East.
4. Space and Science and Technology (2023):
   • Collaboration between Indian Space Research Organization (ISRO) and US National Aeronautics and Space Administration (NASA) continues, with initiatives such as the development of the NASA-ISRO Synthetic Aperture Radar (NISAR) satellite.
   • The signing of the Artemis Accords enables ISRO’s participation in peaceful and sustainable civil exploration of outer space.
   • The launch of iCET underscores efforts to foster cooperation and innovation in key technology domains such as AI, quantum, space, and defense between India and the U.S.

Overview of India – US Relationship

Here is the the brief overview of historical background, current status, strategic alliances, key milestones, and public perceptions shaping the India-US relationship:

Aspect	Description
Historical Background	Relations between India and the United States trace back to India’s independence movement. Despite initial challenges, the relationship has evolved.
Current Status	India and the United States enjoy close relations, collaborating on counterterrorism and countering Chinese influence in the Indo-Pacific region.
Strategic Alliances	Historically, the U.S. aligned with Pakistan (CENTO ally), leading India to cultivate relations with the Soviet Union during the Cold War.
Non-Aligned Movement (1961)	India’s founding membership in the Non-Aligned Movement signaled its intention to abstain from aligning with superpowers like the U.S. and USSR.
Post-Cold War Relations (1990s)	Indian foreign policy adapted to the unipolar world, fostering closer ties with the United States.
21st Century Foreign Policy	India seeks to leverage strategic autonomy to safeguard national interests within a multi-polar world.
Accommodation by U.S. Presidents	Presidents George W. Bush and Barack Obama accommodated India’s core national interests and acknowledged outstanding concerns.
Milestones in Bilateral Relations	Increased bilateral trade and investment, cooperation on global security, and inclusion in decision-making on matters of global governance.
Strategic Cooperation (since 2014)	Strategic cooperation between India and the U.S. has deepened, with India declared a “Major Defense Partner” of the United States.
Cooperation in Multilateral Groups	Both nations have intensified cooperation in multilateral groups such as The Quad and I2U2 Group.
Public Perception	Gallup surveys reflect positive perceptions, with a majority of Americans viewing India favorably and vice versa.
Morning Consult Poll (August 2021)	The poll indicates a high favorability rating of the United States among Indians, demonstrating strong bilateral ties.

People Also view:

• Relations Between India and France
• Importance of India-Russia Relations

• India-China Relations
• Relation Between India and Middle East

• India-UAE: Bilateral Relations
• Relation Between India and Israel
• India and Maldives Relations

US Elections Impact on India

Aspect	Impact
Trade Relations	Under the Biden administration, India anticipates a potential recovery in trade relations with the US. Reconsideration of India’s exclusion from the US’ Generalized System of Preference (GSP) is expected, offering opportunities for enhanced trade.
Investment	Biden’s presidency may bring a favorable environment for Foreign Direct Investment (FDI) from the US into India, potentially bolstering economic growth. India remains an attractive destination for FDI, with the US being the fifth-largest source of FDI.
H1-B Visa Issue	Indian youth, particularly in the technology sector, are closely watching developments regarding H1-B visa policies. A more lenient stance on H1-B visas under the Biden administration could benefit skilled Indian workers seeking employment opportunities in the US.
Other Diplomatic Issues	Contentious issues like data localization and pharmaceutical pricing may see progress towards resolution under the Biden administration. Additionally, a shift in US policy towards Iran could positively impact India’s oil sourcing options.
Geopolitical Dynamics	The Biden administration is expected to adopt a different approach towards China, potentially aligning more closely with India’s strategic interests in the Indo-Pacific region. India anticipates greater support from the US in managing challenges posed by China’s assertiveness.
Climate Change	India welcomes Biden’s commitment to rejoin the Paris Climate Accord, signaling potential cooperation in addressing environmental challenges. Rejoining the accord may facilitate technological and financial assistance to India in meeting climate-related goals.
Civil Liberties and Rights	The Biden administration has expressed concerns over civil liberties and democratic rights in India, particularly regarding measures like the National Register of Citizens (NRC) and the Citizenship (Amendment) Act. Continued scrutiny of such policies may impact bilateral relations.

India-US Relations History

1. Pre-Independence (1778–1947):
   • Conflict between British and French colonies in India during the American Revolution.
   • Indirect influence of the Treaty of Paris (1783) on India’s history.
   • Swami Vivekananda’s promotion of Yoga and Vedanta in the US.
   • Influence of Mahatma Gandhi on Martin Luther King Jr.
2. British Raj (1858–1947):
   • India’s role as a base for the American China Burma India Theater during World War II.
3. Post-Independence (1947–1997):
   • Favorable stance towards India by the Truman administration.
   • Cold War complexities and strained relations.
   • US assistance to India during poor harvests.
   • President Eisenhower’s visit to India in 1959.
   • Strained ties during the Nixon administration.
   • India’s nuclear tests and subsequent sanctions.
   • Gradual improvement under the Reagan administration.
   • Mixed approach by the Clinton administration.
   • India’s nuclear tests under Prime Minister Vajpayee’s leadership and efforts to rebuild relations.
4. NDA I and II Governments (1998–2004):
   • Pokhran nuclear tests and subsequent sanctions.
   • President Clinton’s visit to India in 2000.
   • Enhanced cooperation during the Bush administration.
5. George W. Bush Administration (2004–2008):
   • Growing bilateral relations driven by shared concerns over Islamic extremism, energy security, and climate change.
   • Transformation in bilateral ties covering various sectors like technology, space, education, agriculture, trade, clean energy, and counter-terrorism.
   • Cooperation in disaster relief efforts, such as after the 2004 tsunami.
   • Strategic partnership initiatives, including civilian nuclear cooperation and defense framework agreements.
   • Significant increase in bilateral trade and investment, with major arms deals and cooperation in science and technology.
6. Obama Administration (2008–2014):
   • Further expansion of military ties with major arms sales and defense agreements.
   • Encouragement for stronger military cooperation and recognition of India’s strategic importance.
   • Differences over regional issues like US approach to Pakistan, Afghanistan, and Kashmir.
   • Formal re-engagement through the US-India Strategic Dialogue.
   • Obama’s visit to India in 2010 and strain in relations over incidents like the Devyani Khobragade incident.
   • Continued visa issues related to Narendra Modi’s alleged involvement in the Gujarat riots.
7. NDA Government (2014–Present):
   • Significant improvement in relations under Prime Minister Narendra Modi.
   • Expanding cultural, strategic, military, and economic ties with a focus on confidence-building measures.
   • Rapid growth of India’s economy and closer ties between Indian and American industries.
   • Informal cooperation to manage China’s assertiveness and robust collaboration on counter-terrorism.
   • Easing of export controls and reversal of long-standing US opposition to India’s strategic programs.

Nuclear cooperation Between India and US

1. Pokhran Tests (1998):
   • India’s nuclear tests in May 1998 and the resulting sanctions imposed by the United States and other countries.
   • Initial damage to India-US relations and the imposition of wide-ranging sanctions by President Bill Clinton.
   • Calls for restraint in missile and nuclear testing by both India and Pakistan.
   • Initiation of non-proliferation dialogue to bridge gaps in understanding.
2. Easing of Tension:
   • President Bush lifting sanctions in late September 2001 following India’s nuclear tests.
   • Passage of the India–United States Civilian Nuclear Agreement in December 2006, allowing direct civilian nuclear commerce with India after 30 years.
   • Signing of the India–United States Civil Nuclear Agreement, also known as the “123 Agreement,” in October 2008, facilitating bilateral nuclear cooperation.
3. Post-9/11 Era:
   • India’s contribution to the War on Terror and its impact on diplomatic relations.
   • Strengthening of US-India and EU-India bilateral relationships through joint military exercises.
   • India’s stance on international nuclear treaties like the CTBT and the Nuclear Non-Proliferation Treaty.
   • Improvement in India-US relations under President George W. Bush, including the lifting of most sanctions and resumption of military cooperation.
   • Joint naval and air exercises between India and the United States.
   • India’s push for reforms in the United Nations and the World Trade Organization, including its candidature for a permanent seat on the UN Security Council.
   • Signing of the Indo-US Nuclear Pact in March 2006 during President George Bush’s visit to India, outlining cooperation in the civilian nuclear field.
4. Recent Developments:
   • Signing of agreements between India and the US to strengthen bilateral security and civil nuclear cooperation, including the construction of six American nuclear reactors in India in 2019.

Economic relations Between India and US

1. Foreign Direct Investment (FDI) and Trade Relations:
   • Growth of FDI from the US into India, with figures from 1991 to 2004 showing a significant increase.
   • Indian investments abroad starting in 1992 and the sectors where these investments are focused.
   • Bilateral trade in goods between India and the US, including statistics on exports and imports.
   • Creation of the Trade Policy Forum in July 2005 by President Bush and Prime Minister Manmohan Singh to enhance bilateral trade and investment flow.
   • Achievements and goals of the Trade Policy Forum, including agreements on various trade-related issues such as agricultural trade and tariff barriers.
2. Strategic Trade Authorization and Major Deals:
   • Granting of Strategic Trade Authorization-1 (STA-1) status to India by the United States in August 2018, enabling the export of high-technology products.
   • Announcement of a major aircraft order by Air India from Boeing and Airbus in February 2023, acknowledged by both the US and Indian governments.
   • Resolution of outstanding WTO disputes between the US and India during Modi’s visit in 2023.
3. Science and Technology Cooperation:
   • Collaboration between India’s ISRO and NASA, including the planning of the NASA-ISRO Synthetic Aperture Radar (NISAR) mission and the launch of the U.S.-India Initiative on Critical and Emerging Technologies (iCET).
   • India’s signing of the Artemis Accords in 2023 and plans for joint efforts to the International Space Station.
   • The significance of collaboration in critical and emerging technologies between India and the US.
4. Role of Indian Diaspora:
   • Contributions of the Indian diaspora to bolstering economic relations between India and the US, particularly in technology, entrepreneurship, and academia.
   • Their role in fostering innovation and collaboration in Silicon Valley and various sectors.
   • Contribution to advancements in science and technology, as well as cultural initiatives promoting understanding and dialogue.

Related Artices to view:

• India’s Foreign Policy – Principles and Objectives
• Foreign Trade Policy 2023
• Trade and Investment Policy Reforms Since 1991

FAQs on India-United States Relations

How are the relations between India and the United States?

ndia and the United States enjoy a strong and growing relationship characterized by strategic partnership, robust economic ties, deepening defense cooperation, and close diplomatic relations. Both countries collaborate closely on various fronts, including security, trade, technology, and people-to-people exchanges, driven by shared democratic values and common interests in promoting regional and global stability.

What is the Vision of India and US relations?

The vision for India-US relations is to further deepen and strengthen ties across various sectors, including security, trade, technology, and people-to-people exchanges, fostering mutual prosperity, stability, and cooperation on regional and global challenges.

Which country does India have good relation with?

India has good relations with several countries, including the United States, Russia, France, Japan, Israel, and many others. These relationships are characterized by diplomatic cooperation, trade, defense collaboration, and cultural exchanges, among other aspects.