Introduction
India and the United States are widely recognised as the world’s largest and the most powerful democracies respectively. The relationship between these two countries is thus one of the most fascinating interactions witnessed in the relations among nations. The added significant features are marked by the fact that India is one of the oldest civilisations in the world, whereas the United States is relatively a younger civilisation. However, in terms of statehood experience, it is the US, which is considerably older than India. When India took birth as a newly independent country in 1947, the US was already more than a century and a half old. And by the time of Indian independence, it had emerged as a global superpower. Factors related to civilisation, statehood and governance thus made the relations between India and the US as one of the most complex bilateral relations in world history. Soon after independence, India chose not to join any of the two power blocs, and adopted the policy of non-alignment.
India and USA have been a peculiar kind of a bond for over 60 years.Franklin Roosevelt, the US President during the second world-war was the first prominent American leader to take personal interest in India’s struggle for freedom. India and the US have been describe as “estranged democracies” by Dr. Denis Kux in a book of the same title providing comprehensive coverage of Indo-US relations in the period for 1941-91.There was sort of thaw when
Despite being one of the pioneers and founding members of the Non-Aligned Movement, India developed a closer relationship with the Soviet Union during the Cold War. India's strategic and military relations with Moscow and strong socialist policies had an adverse impact on its relations with the United States. After the collapse of the Soviet Union, India began to review its foreign policy in a unipolar world following which; it took steps to develop closer ties with the European Union and the United States. Today, India and the U.S. share an extensive cultural, strategic, military and economic relationship.
Politically and economically, India and the United States (US) play a significant role in the global arena. The US is India's largest export destination and also one of the leading foreign investors in India. Further, according to a PricewaterhouseCoopers study released in 2008, the Indian economy is estimated to grow to 90 per cent of the US economy by 2050.
Background Analysis of the U.S.-India Relationship
In the wake of the September 2001 terrorist attacks on the United States, India took the immediate and unprecedented step of offering to the United States full cooperation and the use of India’s bases for counterterrorism operations. The offer reflected the sea change that has occurred in recent years in the U.S.-India relationship, which for decades was mired in the politics of the Cold War and India’s friendly relations with the Soviet Union. A marked improvement of relations began in the latter months of the Clinton Administration and was accelerated after 2001.
When two leaders agreed to greatly expand U.S.-India cooperation on a wide range of issues, including counterterrorism, regional security, space and scientific collaboration, civilian nuclear safety, and broadened economic ties. Notable progress has come in the area of security cooperation, with an increasing focus on counterterrorism, joint military exercises, and arms sales. In 2001, the U.S.-India Defense Policy Group met in New Delhi for the first time since India’s 1998 nuclear tests and outlined a defense partnership based on regular and high-level policy dialogue.
U.S. and congressional interests in India cover a wide spectrum of issues, ranging from the militarized dispute with Pakistan and weapons proliferation to concerns about human rights, health, and trade and investment opportunities. In the 1990s, India-U.S. relations were particularly affected by the demise of the Soviet Union India’s main trading partner and most reliable source of economic and military assistance for most of the Cold War and New Delhi’s resulting need to diversify its international relationships.
Also significant were India’s adoption of sweeping economic policy reforms beginning in 1991, a deepening bitterness between India and Pakistan over Kashmir, and signs of a growing Indian preoccupation with China as a potential long-term strategic rival. With the fading of Cold War constraints, the United States and India began exploring the possibilities for a more normalized relationship between the world’s two largest democracies. A 1994 visit to the United States by Indian Prime Minister marked the onset of improved U.S.-India relations. Although discussions were held on nuclear nonproliferation, human rights, and other issues, the main focus of the visit was rapidly expanding U.S.-India economic relations.
Throughout the 1990s, however, regional rivalries, separatist tendencies, and sectarian tensions continued to divert India’s attention and resources from economic and social development. Fallout from these unresolved problems particularly nuclear proliferation and human rights issues presented serious irritants in bilateral relations. President Clinton’s 2000 visit to South Asia seemed a major U.S. initiative to improve cooperation with India. During his subsequent visit to the United States later in 2000, Prime Minister Vajpayee addressed a joint session of Congress and issued a joint statement with President Clinton agreeing to cooperate on arms control, terrorism, and HIV/AIDS. Indian Prime Minister returned to Washington in 2001 and during the Bush Administration high-level visits have continued at a greatly accelerated pace. Prime Minister Singh 2005 visit to Washington where a significant joint U.S.-India statement was issued, and President Bush visited India in 2006.
The Bush Administration vows to “help India become a major world power in the 21st century,” and U.S.-India relations are conducted under the rubric of three major “Dialogue” areas:
Figure 1: Dialogue Areas between India and USA
Evolution of Bilateral Relations
The evolution of bilateral relations of India and USA can be traced as shown below:
The nuclear issue came to dominate India's relations with the US ever since China went nuclear in 1964. Washington suspected that India would follow China and detonate its own bomb sparking off further proliferation of nuclear weapons. The US, along with several other countries soon started a process to deal with proliferation, which culminated in the signing of a Nuclear Non-Proliferation Treaty in 1968. India refused to be a party and opposed this treaty on the ground of its in built discrimination against non-nuclear weapon states. It sought to prevent others from going nuclear, while allowing
Notwithstanding the military distance and political differences between India and the US during the Cold War, the two countries had good working relations in other areas. New Delhi and Washington never perceived each other as enemies. In fact, when Sino-US detente coincided with Indo-Soviet friendship and cooperation in early 1970s, the political distance between India and the US further widened. But even this development did not lead to a serious fracture in the bilateral relationship. India had been a recipient of American food assistance during drought and famine and token economic assistance through the Cold War years. The US did use food aid as political weapon occasionally creating resentment in India, but there is little doubt that India benefited from the US assistance as well.
But the relation hit rock bottom during the Bangladesh crisis. US tried to persuade China to intervene militarily. But the Indo-Soviet treaty of Friendship constrained them in many ways. There was one more troublesome development that riled the US and Western opinion- the nuclear explosion at Pokhran on 18 May 1974. After this USA regarded India as a major regional power.
The real problem, however, between India and the U.S. was the perceptional difference between the two about what they regarded as their interests in the region. From India's point of view the chief problem was the determined and persistent attempts by Washington to create an artificial parity between India and Pakistan. This quest had combined with the repeated arms aid to Pakistan.
Further Emergency in 1975 had its impact. While the Soviet bloc countries supported the emergency, the West, the governments as well as the media, was highly critical. Mrs. Gandhi sharply denounced the Western countries for their double standards in her public meetings and in Parliament. For the first time the pendulum moved too far away against the United States and other Western countries-at least politically. Mrs. Gandhi could have been perturbed at the possibility of U.S. effort to destabilize her Government and the country. However she knew very well the need for a more balanced relationship and she moved early to redress the tilt. The Indian ambassador T.N. Kaul met Kissinger's aides to begin a new dialogue and the Indo- US commission met in October 1974 as Indo-U.S. relations limped back to some kind of normalcy.
Saur Revolution in Afghanistan led to entry of Russian troops there. US reacted by supplying arms and economic assistance to Pakistan. It also supplied arms through Pakistan’s ISI, to factions which resulted into the formation of Taliban and the Al Queda under Osama bin Laden. Mrs. Gandhi continued the efforts at rapprochement with the United States and managed to bring about a working relationship with Washington. She met U.S. President
Rajiv Gandhi displayed the same optimism as his mother when she became Prime Minister about turning around India's relations with the United States but equally quickly he came to realize that complexities of the relationship and the problem of the perceptional differences about their respective national interests. Rajiv Gandhi took an early opportunity to visit the United States in June 1985, struck a kind of personal rapport with Ronald Reagan . He drew the attention of the American elite about their shared values of democracy, freedom, justice, peace and development and the rule of law. But he was also unsparing in pointing out the dangers of a rapidly nuclearising Pakistan. At this time apparently the Americans were hoping that India would turn its foreign and economic policies and dilute its relationship with the Soviet Union; and India was hoping that USA would reappraise its policies towards the subcontinent and moderate its ties with Pakistan. Both expectations were misplaced. Nevertheless Rajiv Gandhi pushed the US door more open and created stable ties. There was very considerable interchange between USA and India in almost every field, political, economic, cultural and social. The economic ties remained particularly strong. Rajiv Gandhi signed an agreement in March 1988 for the transfer of high technology and the subsequent acquisition of a super computer from US. Both sides chose a dual approach towards each other. They used the option of continuing expansion of exchanges and promotion of trade but also retained their respective countervailing relationships.
During his tenure Narasimha Rao began a process of adjustment involving primarily relations with the United States and China. The dialogue with the United States was intensified and a series of continual talks between senior functionaries of the two sides marked the Narasimha Rao regime's attempt to explore a new relationship with the US but remained shackled by the goals of Washington during Bush senior and Clinton administrations to cap and roll back Indian and Pakistani nuclear and missile programmes and maintain parity between the two countries. The pincer movement of US pressure at the time focused on human rights in Kashmir on the one hand and the nuclear and missile programmes of India and Pakistan on the other. The other side of the US pincer pressure on India related to the nuclear non-proliferation concerns. Yet, with all this new understanding, the complexity of the international situation demanded that India should not be pushed off the board. India was too large a country to be marginalized. The economic link was meaningful for both countries. India was an emerging market: it was already on the path of economic revival. The Indo-US trade volumes at $7.4 billion in 1994 could rise exponentially.
It must be mentioned that economics exercises a profound influence on foreign policy. In this perspective it is pertinent to keep in mind that for years now USA had been India's largest export market and that India has generally enjoyed a favorable balance of trade with the US. Even when political relations with USA were not the friendliest economic contacts were kept intact since Nehru's time.
Indo-US relations had begun to mutate during the last years of the Clinton Presidency as US realized that India was an emerging market and an emerging power. The additional factor was the role of the Indian community in the United States. Smaller in numbers, but many of them were well-educated and professionally influential and more vocal in US politics. This was the time when Jaswant Singh (then Foreign Minister) and Strobe Talbot, then Deputy Secretary of State, had begun a track 2 dialogue, away from the glare of publicity to try to reach a modus Vivendi for some of the outstanding problems arising from India's nuclear tests and the US administration's sanctions against India and the demand for adherence to the NPT and the CTBT.
The Clinton administration began advising Pakistan to take action against the militants operating from its territory. The changing perception was also evident from Clinton's visit to India in March 2000-the fourth US President ever to visit India (after Dwight Eisenhower, Richard Nixon and Jimmy Carter ). There was increasing political support for India in the United States. In a resolution carried by 396-4 votes in November 1999, the US House of Representatives lauded India as "a shining example of democracy for all of Asia to follow." Clinton brought American businessmen along with him to underline the importance of Indo-US economic relations. Businessmen from both the countries signed agreements totaling $ 3 billion. The deals represented over $ 2 billion in commercial ventures and $ one billion in US export-import financing.
After Clinton came the Bush administration. The Bush administration changed the political landscape of the United States, more particularly a new interpretation on the use of power, the unique position of USA and its new role and goals in the world. All this was tied up with the fixation on one region: the Middle East, and a remix of the security, arms and oil dimensions. Unlike Europe, whose main preoccupation was centered on economic development and regional economic integration, the US made revolution in military affairs a major objective. Between 1995 and 2000 the US spent $ 1691 billion on the military while the combined military spending of Britain, France, Germany. Russia. China and Japan totaled $ 1225 billion.
India-US relations have seen a remarkable transformation over the last decade. The recent bilateral visit of Prime Minister to Washington in 2009 as the first State Guest of President has reaffirmed the global strategic partnership between India and the United States. The two leaders have reaffirmed that the common ideals and complementary strengths of India and the United States provide a foundation for addressing the global challenges of the 21st century and resolved to build on these to expand the U.S.-India global partnership for mutual benefit, peace, stability and prosperity in Asia.
The signing of Agreement for Cooperation between the Government of India and the Government of the United States of America concerning Peaceful Uses of Nuclear Energy by both countries on October 10, 2008 reflects culmination of the transformation process. India-US relationship is based on both principle and pragmatism which points to a much more durable and multi-faceted relationship for the future. In recent years, there have been close and frequent contacts at political and official levels. There is now a wide-ranging dialogue on global, regional and bilateral issues of mutual interest between the two countries.
Major Areas of Cooperation
Recognizing the new heights achieved in the India-US relationship over the last two Indian and US Administrations, India and the United States are committed to pursue a new phase of the relationship that will enhance global prosperity and stability. A Joint Statement titled “India and the United States: Partnership for a Better World” was issued by Prime Minister and President Obama in 2009, which highlights the main areas of cooperation.
Both the leaders recognized that the India-US partnership is indispensable for :
Figure 2: Areas of Cooperation between USA and India
The two sides launched a Knowledge Initiative with a total funding of USD 10 million that will be allocated to increasing university linkages and junior faculty development exchanges between U.S. and Indian universities and they also agreed to launch the US-India Financial and Economic Partnership to strengthen engagement on economic, financial and investment related issues.
Both the countries reaffirmed their intention to move ahead and operationalize the provisions of the Civil Nuclear Agreement at the earliest and also agreed to consult regularly and seek the early start of negotiations on a multilateral, non-discriminatory and internationally verifiable Fissile Material Cutoff Treaty at the Conference on Disarmament. They further committed themselves to strengthen and reform the global economic and financial architecture in the G-20, World Bank and the IMF, and to achieving genuine reform of the United Nations including in its Security Council in a manner that reflects the contemporary realities of the 21st century.
Cooperation in the field of education, space, and science & technology was further enhanced with the concluding of a Science and Technology Endowment Agreement and also signing of the space related Technology Safeguards Agreement. Greater cooperation is also envisaged on energy security and climate change, focusing on increasing energy efficiency and renewable energy and also to work together with other countries for positive results in the UNFCCC Conference on Climate Change in Copenhagen in 2009. An MOU to “Enhance Cooperation on Energy Security, Energy Efficiency, Clean Energy and Climate Change” was signed between the two sides in 2009.
Foreign Secretary and External Affairs Minister established a "Strategic Dialogue" during the former’s visit to India in 2009, to be pursued by bilateral working groups of principal fields viz:
Figure 3: Strategic Dialogue Between India ad USA
Innovation on major technologies and global health challenges which will lead to more focus on areas of common interest. The two sides signed a Technology Safeguards Agreement that will allow India to launch satellites containing US parts on its satellite launch vehicles for noncommercial purposes. Both the countries are striving to increase and diversify bilateral economic relations and expand trade and investment flows and as members of G-20, are working together with other major economies to foster a sustainable recovery from the global economic crisis.
Other recent high level visits Secretary of State spelt out her vision for the next phase of the India-US relations. She mentioned that the US saw “India as one of the few key partners worldwide who will help us shape the 21 century.” She has termed the next phase as being the “third era of the US-India relations” which would have four platforms of cooperation –global security, human development, economic activity and science and technology .”
Economic Relations
The growing economic partnership between the US and India has been one of the pillars of the transformed bilateral relationship. In the Joint Statement issued in 2009, launch the India– US Financial and Economic Partnership to strengthen bilateral engagement on macro-economic, financial, and investment-related issues.
India has emerged as a thriving market for US exports, which nearly tripled in value between 2004 and 2007. The upward trend has continued in 2008, though at a slower rate and declined in 2009 due to the global economic downturn. The total trade during 2008 was US$43.4 billion (India’s exports to US –25.7 and US exports to India-17.7) as compared to US$21.6 billion (15.5 + 6.1) in the year 2004.
Following table lists the major exports to India and USA:
Major US exports to India Major India’s export to the US Aircraft and aviation-related products Gems and jewelry Fertilizers Textiles Machinery Pharmaceuticals Precious stones and metals Organic chemicals Organic chemicals Engineering goods Optical instruments Iron & steel products Medical instruments
The US is the third largest source of foreign direct investments in India. Cumulative FDI inflows from USA till 2009 were $ 9.71 billion. The sectors attracting FDI from USA are Fuels (Power and Oil Refinery), Telecommunications, Electrical equipments (including computer software and electronics), Food Processing Industries and service sector. According to a report by FICCI, the number of disclosed deals involving acquisitions by Indian companies in USA during 2007-08 and 2008-09 were 55 and 24 respectively and the values were $4.432 billion and $960 million respectively. The most active sectors were IT and IT enabled services, followed by manufacturing and pharmaceuticals.
US Investments in India
India's rapidly expanding economy along with a booming consumer market and easy availability of skilled personnel has been instrumental in attracting several American companies to invest in India.
The US is the third largest contributor of foreign direct investment (FDI) in India.
The overall FDI flow into India from the US during April 2000-February 2010, according to the Department of Industrial Policy and Promotion was US$ 8.21 billion. Companies like Microsoft , Intel, IBM, Dell , Citigroup , J P Morgan and Morgan Stanley , many other US companies are also planning to enter the Indian market with big investments. In 2010, US-based Abbott Laboratories bought Piramal Healthcare's formulation business, USA's biggest independent tower firm American Tower Corp (ATC) agreed to acquire 4,450 towers of Essar Telecom Infrastructure (ETIPL).BorgWarner Inc, a US based auto component and systems manufacturing company with presence in 18 countries, has established its Indian manufacturing facility at Sipcot Industrial Park at Sriperambadur near Chennai. US-based Hospira has bought Orchid Chemicals & Pharmaceuticals' injectables business for around US$ 400 million.
Indian Investments in the US
India has emerged as the second fastest growing investor in the United States after the UAE between 2004 and 2008, India accounted for 64 per cent of the foreign direct investment in the US. According to data released by the US Treasury Department, India's holdings amounted to US$ 29.6 billion in 2009. The holdings were higher than in the corresponding period of the previous year by US$ 400 million. Besides the Reserve Bank of India (RBI), institutions that invest in US Treasuries include the General Insurance Corporation of India, foreign branches/subsidiaries of domestic banks and domestic mutual funds that are permitted to invest in foreign securities. Some recent investments include, In 2010 information technology company Rolta acquired US-based IT consulting firm OneGIS for an undisclosed amount. Inox Group's venture, Inox India, has acquired US-based Cryogenic Vessel Alternatives (CVA), the world's largest cryogenic transportation equipment maker.
Road Ahead
There are several areas where there is abundant scope to further improve economic cooperation between India and the US. Opportunities for progress exists especially in areas like communication infrastructure, IT, telecom, IT-enabled services, data centres, software development, and other knowledge industries such as pharmaceuticals and biotechnology. According to a CII report titled 'India-US Economic Relations: The Next Decade' bilateral trade between India and the US could increase eight fold to US$ 320 billion in 2018 from US$ 42 billion in 2007-08.
Defense Cooperation
Both Governments agreed to continue pursuing mutually beneficial defence cooperation through the existing security dialogue, service-level exchanges, defence exercises and trade and technology transfer and collaboration. The ‘New Framework for India-US Defence Relationship’ signed between the two sides and the India-US ‘Framework for Maritime Security Cooperation’ has added a new dynamism to the Indo-US defence ties. Under the Framework for Defence Cooperation, six Joint Working Groups are functioning. Joint Exercises between the three Services of both countries have improved in scale and frequency since the signing of the New Framework. From the US, India has presently contracted for defence equipments such as radars, maritime patrol aircraft, transport aircraft, anti ship missiles etc.
Civil Nuclear Cooperation
Plans to initiate U.S.-India civil nuclear cooperation were long hampered by domestic political resistance in India, but were finalized in the latter half of 2008. In a major policy shift by the United States, in 2005 U.S.-India Joint Statement notably asserted that “as a responsible state with advanced nuclear technology , India should acquire the same benefits and advantages as other such states,” and President Bush vowed to work on achieving “full civilian nuclear energy cooperation with India.” As a reversal of three decades of U.S. nonproliferation policy, such proposed cooperation stirred controversy and required changes in both U.S. law and in international guidelines. Enabling U.S. legislation became public law in December 2006 (“the Hyde Act”). Congressional approval of the required Agreement for Peaceful Nuclear Cooperation or “123 Agreement” came in 2008. In August, the International Atomic Energy Agency (IAEA) Board of Governors approved a safeguards accord with India. Later that month, the 45-member Nuclear Suppliers Group (NSG) met to discuss adjusting its guidelines to permit nuclear trade with India. The final legal hurdle to commencing U.S. - India civil nuclear cooperation was crossed in October when the U.S. Congress passed a Joint Resolution of Approval of the 123 Agreement and the President signed the bill into law.
India - US Space Cooperation
The U.S-India Joint Working Group on Civil Space Cooperation is the forum for discussions on joint activities in space. India signed a landmark agreement with NASA
at their Ames Research Centre in 2008 to carry out lunar exploration. A Technology Safeguards Agreement (TSA) signed with the US in New Delhi, will open up fresh opportunities for India in the field of space launches and will facilitate the launch of non-commercial US satellites and satellites with US components on Indian launch vehicles. A Letter of Intent was signed between ISRO and NASA in 2009, on Oceansat-2 collaboration, on the sidelines of the 6th plenary session of the Group on Earth Observations (GEO) in Washington. The Oceansat-2 was successfully launched by ISRO from Sriharikota using PSLV.This would enable the US agencies to receive Oceansat-2 data for research, education etc.
India-US Cooperation in Education sector
To explores partnerships with top US Universities for establishing fourteen new Innovation Universities in India. Amartya Sen Fellowship Fund’ was instituted in 2008 at Harvard University for fellowships for deserving students from India. Indian study centers have been established at University of Pennsylvania, South Asian Initiative in Harvard, India Initiative in Yale. Government of India has taken many initiatives such as “Promotion of Indian Higher Education Abroad (PIHEAD)” program and awarding fellowships, including through the corporate sector; teaching of Ayurveda in US medical schools; and Indo-US Cooperation on E-Learning. In academic year 2008-09, there were 103,260 students from India studying in the United States, constituting 15.4 % of total foreign students in the USA. Both Governments launched the “Obama-Singh 21st Century Knowledge Initiative” with funding from both sides to increase university linkages and junior faculty development exchanges between US and Indian universities.
Indo-US Cooperation in Science & Technology
India and the US signed a Science & Technology Agreement that deals with IPR issues and provides for joint research and training, and the establishment of public-private partnerships. A $30 million Science & Technology Endowment for various related projects was established. The 11th annual governing body meeting of the India-US Science and Technology Forum (IUSSTF) was held at National Institute of Health, Bethesda, USA. A MoU for “Earth Observations and Earth Sciences” has been signed between Ministry of Earth Sciences (MoES) and US National Oceanic and Atmospheric Administration (NOAA).
Indo-US Cooperation in the Health Sector
A “Health Dialogue” was established between the two countries, which form part of the “Indo-US Strategic Dialogue.” US National Institute of Health (NIH) has eight collaborative programmes with DBT, DST & Indian Council of Medical Research (ICMR); NIH awarded over 100 research projects to India; Indo-US Centre for Research on Indian System of Medicine (CRISM) established at University of Mississippi, USA; Teaching of basic courses on Ayurveda in different U.S Medical Schools as Continued Medical Education (CME) course by experts nominated by the Department of AYUSH, Ministry of Health & Family Welfare, Government of India. The Dept. of Biotechnology in collaboration with Indo-US S&T Forum and Stanford University has formulated Stanford-India Bio-design program for development of implants and medical devices. US Food & Drug Administration (USFDA) opened two offices in New Delhi and Mumbai in 2009.
On Multilateral Forum
Despite cooperation in various sectors, there exists divergence of views between India and US on the issues related to the multilateral forums. The US is apprenhensive and reluctant in cooperating India’s bid to become a permanent member of the Unoted Nations. ON the issue of Doha Agenda of WTO, like agricultural subsidies, NAMA, Market Access etc. US is not ready to accommodate the views of India and other developing countries. This led to the breakdown of recent WTO talks. On the issue of climate change, food and energy security also the views of the US was at great difference with that of India.
Joint Working Group on Counter Terrorism
The India-US Counterterrorism Cooperation Initiative was initialed between the two countries, which would expand collaboration on counter-terrorism, information sharing and capacity building. Both the countries expressed their grave concern about the threat posed by terrorism and violent extremists emanating from India’s neighborhood, and agreed that resolute and credible steps must be taken to eliminate safe havens and sanctuaries that provide shelter to terrorists and their activities. JWG on Counter Terrorism was established in 2000 and in the aftermath of the Mumbai terrorist attacks in 2008, both sides have reiterated their commitment to combating terrorism.
Cultural ties
Indian music, dance, art and literature are widely appreciated in the United States. Kennedy Centre in collaboration with Indian Council for Cultural Relations [ICCR] is organizing the “Festival of India’” in March 2011 focusing on established as well as emerging artists and art forms including all of the performing arts. Apart from live shows, exhibitions and lecture-cum demonstrations, the Kennedy Center will also showcase the Festival of India through educational programmes that reaches into schools through satellite and internet.
People-to-people Ties
The 2.7 million strong Indian American communities in the United States has been growing in affluence and political strength and has developed into a force for closer and stronger ties between their adopted country and their nation of origin. The community has played a significant role in the successful passage of the Henry J. Hyde Act by the U.S. Congress and eventually signing of the Agreement for Cooperation between the Government of India and the Government of the United States of America concerning Peaceful Uses of Nuclear Energy. A number of Indian Americans are occupying high level posts of Governor, Senators/Representatives of State Legislatures and in the Federal Administration. Their active cooperation and interaction at different levels with the Government of India as well as with the U.S. Administration provides a bridge between the two countries.
Conclusion:
Long considered a “strategic backwater” from Washington’s perspective , South Asia has emerged in the 21st century as increasingly vital to core U.S. foreign policy interests. India, the region’s dominant actor with more than one billion citizens, is often characterized as a nascent major power and “natural partner” of the United States, one that many analysts view as a potential counterweight to China’s growing clout. Washington and New Delhi have since 2004 been pursuing a “strategic partnership” based on shared values such as democracy, pluralism, and rule of law. Numerous economic, security, and global initiatives, including plans for civilian nuclear cooperation, is underway. Also in 2005, the United States and India signed a ten-year defense framework agreement that calls for expanding bilateral security cooperation. Since 2002, the two countries have engaged in numerous and unprecedented combined military exercises. Major U.S. arms sales to India are underway; more are anticipated. The influence of a growing and relatively wealthy Indian-American community of more than two million is reflected in Congress’s largest country-specific caucus.
Further U.S. interest in South Asia focuses on ongoing tensions between India and Pakistan rooted largely in competing claims to the Kashmir region and in “cross-border terrorism” in both Kashmir and major Indian cities. In the interests of regional stability, the United States strongly endorses an existing, but currently moribund India-Pakistan peace initiative, and remains concerned about the potential for conflict over Kashmiri sovereignty to cause open hostilities between these two nuclear-armed countries. The United States seeks to curtail the proliferation of nuclear weapons and ballistic missiles in South Asia. Both India and Pakistan resist external pressure to sign the major nonproliferation treaties. In 1998, the two countries conducted nuclear tests that evoked international condemnation. Proliferation-related restrictions on U.S. aid were triggered; remaining sanctions on India (and Pakistan) were removed in late 2001.
Upon the seating of a new U.S. President in 2009, most experts expected general policy continuity with regard to U.S.-India relations. Yet some look to history in anticipating potential friction on issues such as nonproliferation (where India may be pressed to join such multilateral initiatives as the Comprehensive Test Ban Treaty and the Fissile Material Cutoff Treaty); human rights and Kashmir (where the new Administration could become more interventionist); and bilateral economic relations (where the new Administration may pursue so-called protectionist policies). Yet President Obama’s statement that, “Our rapidly growing and deepening friendship with India offers benefits to all the world’s citizens,” suggests that the bilateral strategic partnership likely will continue and even deepen.
India has been in the midst of major and rapid economic expansion. Many U.S. business interests view India as a lucrative market and candidate for foreign investment. The United States supports India’s efforts to transform its once quasi-socialist economy through fiscal reform and market opening. Since 1991, India has taken major steps in this direction and coalition governments have kept the country on a general path of reform, yet there is U.S. concern that such movement is slow and inconsistent. India is the world’s fourth-largest emitter of greenhouse gases. Congress also continues to have concerns about abuses of human rights, including caste- and gender-based discrimination, and religious freedoms in India. Moreover, the spread of HIV/AIDS in India has been identified as a serious development. This report will be updated regularly.
Introduction
India and the United States are widely recognised as the world’s largest and the most powerful democracies respectively. The relationship between these two countries is thus one of the most fascinating interactions witnessed in the relations among nations. The added significant features are marked by the fact that India is one of the oldest civilisations in the world, whereas the United States is relatively a younger civilisation. However, in terms of statehood experience, it is the US, which is considerably older than India. When India took birth as a newly independent country in 1947, the US was already more than a century and a half old. And by the time of Indian independence, it had emerged as a global superpower. Factors related to civilisation, statehood and governance thus made the relations between India and the US as one of the most complex bilateral relations in world history. Soon after independence, India chose not to join any of the two power blocs, and adopted the policy of non-alignment.
India and USA have been a peculiar kind of a bond for over 60 years.Franklin Roosevelt, the US President during the second world-war was the first prominent American leader to take personal interest in India’s struggle for freedom. India and the US have been describe as “estranged democracies” by Dr. Denis Kux in a book of the same title providing comprehensive coverage of Indo-US relations in the period for 1941-91.There was sort of thaw when
Despite being one of the pioneers and founding members of the Non-Aligned Movement, India developed a closer relationship with the Soviet Union during the Cold War. India's strategic and military relations with Moscow and strong socialist policies had an adverse impact on its relations with the United States. After the collapse of the Soviet Union, India began to review its foreign policy in a unipolar world following which; it took steps to develop closer ties with the European Union and the United States. Today, India and the U.S. share an extensive cultural, strategic, military and economic relationship.
Politically and economically, India and the United States (US) play a significant role in the global arena. The US is India's largest export destination and also one of the leading foreign investors in India. Further, according to a PricewaterhouseCoopers study released in 2008, the Indian economy is estimated to grow to 90 per cent of the US economy by 2050.
Despite being one of the pioneers and founding members of the Non-Aligned Movement, India developed a closer relationship with the Soviet Union during the Cold War. India's strategic and military relations with Moscow and strong socialist policies had an adverse impact on its relations with the United States. After the collapse of the Soviet Union, India began to review its foreign policy in a unipolar world following which; it took steps to develop closer ties with the European Union and the United States. Today, India and the U.S. share an extensive cultural, strategic, military and economic relationship.
Politically and economically, India and the United States (US) play a significant role in the global arena. The US is India's largest export destination and also one of the leading foreign investors in India. Further, according to a PricewaterhouseCoopers study released in 2008, the Indian economy is estimated to grow to 90 per cent of the US economy by 2050.
Background Analysis of the U.S.-India Relationship
In the wake of the September 2001 terrorist attacks on the United States, India took the immediate and unprecedented step of offering to the United States full cooperation and the use of India’s bases for counterterrorism operations. The offer reflected the sea change that has occurred in recent years in the U.S.-India relationship, which for decades was mired in the politics of the Cold War and India’s friendly relations with the Soviet Union. A marked improvement of relations began in the latter months of the Clinton Administration and was accelerated after 2001.
When two leaders agreed to greatly expand U.S.-India cooperation on a wide range of issues, including counterterrorism, regional security, space and scientific collaboration, civilian nuclear safety, and broadened economic ties. Notable progress has come in the area of security cooperation, with an increasing focus on counterterrorism, joint military exercises, and arms sales. In 2001, the U.S.-India Defense Policy Group met in New Delhi for the first time since India’s 1998 nuclear tests and outlined a defense partnership based on regular and high-level policy dialogue.
U.S. and congressional interests in India cover a wide spectrum of issues, ranging from the militarized dispute with Pakistan and weapons proliferation to concerns about human rights, health, and trade and investment opportunities. In the 1990s, India-U.S. relations were particularly affected by the demise of the Soviet Union India’s main trading partner and most reliable source of economic and military assistance for most of the Cold War and New Delhi’s resulting need to diversify its international relationships.
Also significant were India’s adoption of sweeping economic policy reforms beginning in 1991, a deepening bitterness between India and Pakistan over Kashmir, and signs of a growing Indian preoccupation with China as a potential long-term strategic rival. With the fading of Cold War constraints, the United States and India began exploring the possibilities for a more normalized relationship between the world’s two largest democracies. A 1994 visit to the United States by Indian Prime Minister marked the onset of improved U.S.-India relations. Although discussions were held on nuclear nonproliferation, human rights, and other issues, the main focus of the visit was rapidly expanding U.S.-India economic relations.
Throughout the 1990s, however, regional rivalries, separatist tendencies, and sectarian tensions continued to divert India’s attention and resources from economic and social development. Fallout from these unresolved problems particularly nuclear proliferation and human rights issues presented serious irritants in bilateral relations. President Clinton’s 2000 visit to South Asia seemed a major U.S. initiative to improve cooperation with India. During his subsequent visit to the United States later in 2000, Prime Minister Vajpayee addressed a joint session of Congress and issued a joint statement with President Clinton agreeing to cooperate on arms control, terrorism, and HIV/AIDS. Indian Prime Minister returned to Washington in 2001 and during the Bush Administration high-level visits have continued at a greatly accelerated pace. Prime Minister Singh 2005 visit to Washington where a significant joint U.S.-India statement was issued, and President Bush visited India in 2006.
When two leaders agreed to greatly expand U.S.-India cooperation on a wide range of issues, including counterterrorism, regional security, space and scientific collaboration, civilian nuclear safety, and broadened economic ties. Notable progress has come in the area of security cooperation, with an increasing focus on counterterrorism, joint military exercises, and arms sales. In 2001, the U.S.-India Defense Policy Group met in New Delhi for the first time since India’s 1998 nuclear tests and outlined a defense partnership based on regular and high-level policy dialogue.
U.S. and congressional interests in India cover a wide spectrum of issues, ranging from the militarized dispute with Pakistan and weapons proliferation to concerns about human rights, health, and trade and investment opportunities. In the 1990s, India-U.S. relations were particularly affected by the demise of the Soviet Union India’s main trading partner and most reliable source of economic and military assistance for most of the Cold War and New Delhi’s resulting need to diversify its international relationships.
Also significant were India’s adoption of sweeping economic policy reforms beginning in 1991, a deepening bitterness between India and Pakistan over Kashmir, and signs of a growing Indian preoccupation with China as a potential long-term strategic rival. With the fading of Cold War constraints, the United States and India began exploring the possibilities for a more normalized relationship between the world’s two largest democracies. A 1994 visit to the United States by Indian Prime Minister marked the onset of improved U.S.-India relations. Although discussions were held on nuclear nonproliferation, human rights, and other issues, the main focus of the visit was rapidly expanding U.S.-India economic relations.
Throughout the 1990s, however, regional rivalries, separatist tendencies, and sectarian tensions continued to divert India’s attention and resources from economic and social development. Fallout from these unresolved problems particularly nuclear proliferation and human rights issues presented serious irritants in bilateral relations. President Clinton’s 2000 visit to South Asia seemed a major U.S. initiative to improve cooperation with India. During his subsequent visit to the United States later in 2000, Prime Minister Vajpayee addressed a joint session of Congress and issued a joint statement with President Clinton agreeing to cooperate on arms control, terrorism, and HIV/AIDS. Indian Prime Minister returned to Washington in 2001 and during the Bush Administration high-level visits have continued at a greatly accelerated pace. Prime Minister Singh 2005 visit to Washington where a significant joint U.S.-India statement was issued, and President Bush visited India in 2006.
The Bush Administration vows to “help India become a major world power in the 21st century,” and U.S.-India relations are conducted under the rubric of three major “Dialogue” areas:
Figure 1: Dialogue Areas between India and USA
Evolution of Bilateral Relations
The evolution of bilateral relations of India and USA can be traced as shown below:
The nuclear issue came to dominate India's relations with the US ever since China went nuclear in 1964. Washington suspected that India would follow China and detonate its own bomb sparking off further proliferation of nuclear weapons. The US, along with several other countries soon started a process to deal with proliferation, which culminated in the signing of a Nuclear Non-Proliferation Treaty in 1968. India refused to be a party and opposed this treaty on the ground of its in built discrimination against non-nuclear weapon states. It sought to prevent others from going nuclear, while allowing
Notwithstanding the military distance and political differences between India and the US during the Cold War, the two countries had good working relations in other areas. New Delhi and Washington never perceived each other as enemies. In fact, when Sino-US detente coincided with Indo-Soviet friendship and cooperation in early 1970s, the political distance between India and the US further widened. But even this development did not lead to a serious fracture in the bilateral relationship. India had been a recipient of American food assistance during drought and famine and token economic assistance through the Cold War years. The US did use food aid as political weapon occasionally creating resentment in India, but there is little doubt that India benefited from the US assistance as well.
But the relation hit rock bottom during the Bangladesh crisis. US tried to persuade China to intervene militarily. But the Indo-Soviet treaty of Friendship constrained them in many ways. There was one more troublesome development that riled the US and Western opinion- the nuclear explosion at Pokhran on 18 May 1974. After this USA regarded India as a major regional power.
The real problem, however, between India and the U.S. was the perceptional difference between the two about what they regarded as their interests in the region. From India's point of view the chief problem was the determined and persistent attempts by Washington to create an artificial parity between India and Pakistan. This quest had combined with the repeated arms aid to Pakistan.
Further Emergency in 1975 had its impact. While the Soviet bloc countries supported the emergency, the West, the governments as well as the media, was highly critical. Mrs. Gandhi sharply denounced the Western countries for their double standards in her public meetings and in Parliament. For the first time the pendulum moved too far away against the United States and other Western countries-at least politically. Mrs. Gandhi could have been perturbed at the possibility of U.S. effort to destabilize her Government and the country. However she knew very well the need for a more balanced relationship and she moved early to redress the tilt. The Indian ambassador T.N. Kaul met Kissinger's aides to begin a new dialogue and the Indo- US commission met in October 1974 as Indo-U.S. relations limped back to some kind of normalcy.
Saur Revolution in Afghanistan led to entry of Russian troops there. US reacted by supplying arms and economic assistance to Pakistan. It also supplied arms through Pakistan’s ISI, to factions which resulted into the formation of Taliban and the Al Queda under Osama bin Laden. Mrs. Gandhi continued the efforts at rapprochement with the United States and managed to bring about a working relationship with Washington. She met U.S. President
Rajiv Gandhi displayed the same optimism as his mother when she became Prime Minister about turning around India's relations with the United States but equally quickly he came to realize that complexities of the relationship and the problem of the perceptional differences about their respective national interests. Rajiv Gandhi took an early opportunity to visit the United States in June 1985, struck a kind of personal rapport withRonald Reagan . He drew the attention of the American elite about their shared values of democracy, freedom, justice, peace and development and the rule of law. But he was also unsparing in pointing out the dangers of a rapidly nuclearising Pakistan. At this time apparently the Americans were hoping that India would turn its foreign and economic policies and dilute its relationship with the Soviet Union; and India was hoping that USA would reappraise its policies towards the subcontinent and moderate its ties with Pakistan. Both expectations were misplaced. Nevertheless Rajiv Gandhi pushed the US door more open and created stable ties. There was very considerable interchange between USA and India in almost every field, political, economic, cultural and social. The economic ties remained particularly strong. Rajiv Gandhi signed an agreement in March 1988 for the transfer of high technology and the subsequent acquisition of a super computer from US. Both sides chose a dual approach towards each other. They used the option of continuing expansion of exchanges and promotion of trade but also retained their respective countervailing relationships.
During his tenure Narasimha Rao began a process of adjustment involving primarily relations with the United States and China. The dialogue with the United States was intensified and a series of continual talks between senior functionaries of the two sides marked the Narasimha Rao regime's attempt to explore a new relationship with the US but remained shackled by the goals of Washington during Bush senior and Clinton administrations to cap and roll back Indian and Pakistani nuclear and missile programmes and maintain parity between the two countries. The pincer movement of US pressure at the time focused on human rights in Kashmir on the one hand and the nuclear and missile programmes of India and Pakistan on the other. The other side of the US pincer pressure on India related to the nuclear non-proliferation concerns. Yet, with all this new understanding, the complexity of the international situation demanded that India should not be pushed off the board. India was too large a country to be marginalized. The economic link was meaningful for both countries. India was an emerging market: it was already on the path of economic revival. The Indo-US trade volumes at $7.4 billion in 1994 could rise exponentially.
It must be mentioned that economics exercises a profound influence on foreign policy. In thisperspective it is pertinent to keep in mind that for years now USA had been India's largest export market and that India has generally enjoyed a favorable balance of trade with the US. Even when political relations with USA were not the friendliest economic contacts were kept intact since Nehru's time.
Indo-US relations had begun to mutate during the last years of the Clinton Presidency as US realized that India was an emerging market and an emerging power. The additional factor was the role of the Indian community in the United States. Smaller in numbers, but many of them were well-educated and professionally influential and more vocal in US politics. This was the time when Jaswant Singh (then Foreign Minister) and Strobe Talbot, then Deputy Secretary of State, had begun a track 2 dialogue, away from the glare of publicity to try to reach a modus Vivendi for some of the outstanding problems arising from India's nuclear tests and the US administration's sanctions against India and the demand for adherence to the NPT and the CTBT.
The Clinton administration began advising Pakistan to take action against the militants operating from its territory. The changing perception was also evident from Clinton's visit to India in March 2000-the fourth US President ever to visit India (after Dwight Eisenhower,Richard Nixon and Jimmy Carter ). There was increasing political support for India in the United States. In a resolution carried by 396-4 votes in November 1999, the US House of Representatives lauded India as "a shining example of democracy for all of Asia to follow." Clinton brought American businessmen along with him to underline the importance of Indo-US economic relations. Businessmen from both the countries signed agreements totaling $ 3 billion. The deals represented over $ 2 billion in commercial ventures and $ one billion in US export-import financing.
After Clinton came the Bush administration. The Bush administration changed the political landscape of the United States, more particularly a new interpretation on the use of power, the unique position of USA and its new role and goals in the world. All this was tied up with the fixation on one region: the Middle East, and a remix of the security, arms and oil dimensions. Unlike Europe, whose main preoccupation was centered on economic development and regional economic integration, the US made revolution in military affairs a major objective. Between 1995 and 2000 the US spent $ 1691 billion on the military while the combined military spending of Britain, France, Germany. Russia. China and Japan totaled $ 1225 billion.
India-US relations have seen a remarkable transformation over the last decade. The recent bilateral visit of Prime Minister to Washington in 2009 as the first State Guest of President has reaffirmed the global strategic partnership between India and the United States. The two leaders have reaffirmed that the common ideals and complementary strengths of India and the United States provide a foundation for addressing the global challenges of the 21st century and resolved to build on these to expand the U.S.-India global partnership for mutual benefit, peace, stability and prosperity in Asia.
The signing of Agreement for Cooperation between the Government of India and the Government of the United States of America concerning Peaceful Uses of Nuclear Energy by both countries on October 10, 2008 reflects culmination of the transformation process. India-US relationship is based on both principle and pragmatism which points to a much more durable and multi-faceted relationship for the future. In recent years, there have been close and frequent contacts at political and official levels. There is now a wide-ranging dialogue on global, regional and bilateral issues of mutual interest between the two countries.
Notwithstanding the military distance and political differences between India and the US during the Cold War, the two countries had good working relations in other areas. New Delhi and Washington never perceived each other as enemies. In fact, when Sino-US detente coincided with Indo-Soviet friendship and cooperation in early 1970s, the political distance between India and the US further widened. But even this development did not lead to a serious fracture in the bilateral relationship. India had been a recipient of American food assistance during drought and famine and token economic assistance through the Cold War years. The US did use food aid as political weapon occasionally creating resentment in India, but there is little doubt that India benefited from the US assistance as well.
But the relation hit rock bottom during the Bangladesh crisis. US tried to persuade China to intervene militarily. But the Indo-Soviet treaty of Friendship constrained them in many ways. There was one more troublesome development that riled the US and Western opinion- the nuclear explosion at Pokhran on 18 May 1974. After this USA regarded India as a major regional power.
The real problem, however, between India and the U.S. was the perceptional difference between the two about what they regarded as their interests in the region. From India's point of view the chief problem was the determined and persistent attempts by Washington to create an artificial parity between India and Pakistan. This quest had combined with the repeated arms aid to Pakistan.
Further Emergency in 1975 had its impact. While the Soviet bloc countries supported the emergency, the West, the governments as well as the media, was highly critical. Mrs. Gandhi sharply denounced the Western countries for their double standards in her public meetings and in Parliament. For the first time the pendulum moved too far away against the United States and other Western countries-at least politically. Mrs. Gandhi could have been perturbed at the possibility of U.S. effort to destabilize her Government and the country. However she knew very well the need for a more balanced relationship and she moved early to redress the tilt. The Indian ambassador T.N. Kaul met Kissinger's aides to begin a new dialogue and the Indo- US commission met in October 1974 as Indo-U.S. relations limped back to some kind of normalcy.
Saur Revolution in Afghanistan led to entry of Russian troops there. US reacted by supplying arms and economic assistance to Pakistan. It also supplied arms through Pakistan’s ISI, to factions which resulted into the formation of Taliban and the Al Queda under Osama bin Laden. Mrs. Gandhi continued the efforts at rapprochement with the United States and managed to bring about a working relationship with Washington. She met U.S. President
Rajiv Gandhi displayed the same optimism as his mother when she became Prime Minister about turning around India's relations with the United States but equally quickly he came to realize that complexities of the relationship and the problem of the perceptional differences about their respective national interests. Rajiv Gandhi took an early opportunity to visit the United States in June 1985, struck a kind of personal rapport with
During his tenure Narasimha Rao began a process of adjustment involving primarily relations with the United States and China. The dialogue with the United States was intensified and a series of continual talks between senior functionaries of the two sides marked the Narasimha Rao regime's attempt to explore a new relationship with the US but remained shackled by the goals of Washington during Bush senior and Clinton administrations to cap and roll back Indian and Pakistani nuclear and missile programmes and maintain parity between the two countries. The pincer movement of US pressure at the time focused on human rights in Kashmir on the one hand and the nuclear and missile programmes of India and Pakistan on the other. The other side of the US pincer pressure on India related to the nuclear non-proliferation concerns. Yet, with all this new understanding, the complexity of the international situation demanded that India should not be pushed off the board. India was too large a country to be marginalized. The economic link was meaningful for both countries. India was an emerging market: it was already on the path of economic revival. The Indo-US trade volumes at $7.4 billion in 1994 could rise exponentially.
It must be mentioned that economics exercises a profound influence on foreign policy. In this
Indo-US relations had begun to mutate during the last years of the Clinton Presidency as US realized that India was an emerging market and an emerging power. The additional factor was the role of the Indian community in the United States. Smaller in numbers, but many of them were well-educated and professionally influential and more vocal in US politics. This was the time when Jaswant Singh (then Foreign Minister) and Strobe Talbot, then Deputy Secretary of State, had begun a track 2 dialogue, away from the glare of publicity to try to reach a modus Vivendi for some of the outstanding problems arising from India's nuclear tests and the US administration's sanctions against India and the demand for adherence to the NPT and the CTBT.
The Clinton administration began advising Pakistan to take action against the militants operating from its territory. The changing perception was also evident from Clinton's visit to India in March 2000-the fourth US President ever to visit India (after Dwight Eisenhower,
After Clinton came the Bush administration. The Bush administration changed the political landscape of the United States, more particularly a new interpretation on the use of power, the unique position of USA and its new role and goals in the world. All this was tied up with the fixation on one region: the Middle East, and a remix of the security, arms and oil dimensions. Unlike Europe, whose main preoccupation was centered on economic development and regional economic integration, the US made revolution in military affairs a major objective. Between 1995 and 2000 the US spent $ 1691 billion on the military while the combined military spending of Britain, France, Germany. Russia. China and Japan totaled $ 1225 billion.
India-US relations have seen a remarkable transformation over the last decade. The recent bilateral visit of Prime Minister to Washington in 2009 as the first State Guest of President has reaffirmed the global strategic partnership between India and the United States. The two leaders have reaffirmed that the common ideals and complementary strengths of India and the United States provide a foundation for addressing the global challenges of the 21st century and resolved to build on these to expand the U.S.-India global partnership for mutual benefit, peace, stability and prosperity in Asia.
The signing of Agreement for Cooperation between the Government of India and the Government of the United States of America concerning Peaceful Uses of Nuclear Energy by both countries on October 10, 2008 reflects culmination of the transformation process. India-US relationship is based on both principle and pragmatism which points to a much more durable and multi-faceted relationship for the future. In recent years, there have been close and frequent contacts at political and official levels. There is now a wide-ranging dialogue on global, regional and bilateral issues of mutual interest between the two countries.
Major Areas of Cooperation
Recognizing the new heights achieved in the India-US relationship over the last two Indian and US Administrations, India and the United States are committed to pursue a new phase of the relationship that will enhance global prosperity and stability. A Joint Statement titled “India and the United States: Partnership for a Better World” was issued by Prime Minister and President Obama in 2009, which highlights the main areas of cooperation.
Both the leaders recognized that the India-US partnership is indispensable for :
Figure 2: Areas of Cooperation between USA and India
The two sides launched a Knowledge Initiative with a total funding of USD 10 million that will be allocated to increasing university linkages and junior faculty development exchanges between U.S. and Indian universities and they also agreed to launch the US-India Financial and Economic Partnership to strengthen engagement on economic, financial and investment related issues.
Both the countries reaffirmed their intention to move ahead and operationalize the provisions of the Civil Nuclear Agreement at the earliest and also agreed to consult regularly and seek the early start of negotiations on a multilateral, non-discriminatory and internationally verifiable Fissile Material Cutoff Treaty at the Conference on Disarmament. They further committed themselves to strengthen and reform the global economic and financial architecture in the G-20, World Bank and the IMF, and to achieving genuine reform of the United Nations including in its Security Council in a manner that reflects the contemporary realities of the 21st century.
Cooperation in the field of education, space, and science &technology was further enhanced with the concluding of a Science and Technology Endowment Agreement and also signing of the space related Technology Safeguards Agreement. Greater cooperation is also envisaged on energy security and climate change, focusing on increasing energy efficiency and renewable energy and also to work together with other countries for positive results in the UNFCCC Conference on Climate Change in Copenhagen in 2009. An MOU to “Enhance Cooperation on Energy Security, Energy Efficiency, Clean Energy and Climate Change” was signed between the two sides in 2009.
Foreign Secretary and External Affairs Minister established a "Strategic Dialogue" during the former’s visit to India in 2009, to be pursued by bilateral working groups of principal fields viz:
Both the countries reaffirmed their intention to move ahead and operationalize the provisions of the Civil Nuclear Agreement at the earliest and also agreed to consult regularly and seek the early start of negotiations on a multilateral, non-discriminatory and internationally verifiable Fissile Material Cutoff Treaty at the Conference on Disarmament. They further committed themselves to strengthen and reform the global economic and financial architecture in the G-20, World Bank and the IMF, and to achieving genuine reform of the United Nations including in its Security Council in a manner that reflects the contemporary realities of the 21st century.
Cooperation in the field of education, space, and science &
Foreign Secretary and External Affairs Minister established a "Strategic Dialogue" during the former’s visit to India in 2009, to be pursued by bilateral working groups of principal fields viz:
Figure 3: Strategic Dialogue Between India ad USA
Innovation on major technologies and global health challenges which will lead to more focus on areas of common interest. The two sides signed a Technology Safeguards Agreement that will allow India to launch satellites containing US parts on its satellite launch vehicles for noncommercial purposes. Both the countries are striving to increase and diversify bilateral economic relations and expand trade and investment flows and as members of G-20, are working together with other major economies to foster a sustainable recovery from the global economic crisis.
Other recent high level visits Secretary of State spelt out her vision for the next phase of the India-US relations. She mentioned that the US saw “India as one of the few key partners worldwide who will help us shape the 21 century.” She has termed the next phase as being the “third era of the US-India relations” which would have four platforms of cooperation –global security, human development, economic activity and science andtechnology .”
Other recent high level visits Secretary of State spelt out her vision for the next phase of the India-US relations. She mentioned that the US saw “India as one of the few key partners worldwide who will help us shape the 21 century.” She has termed the next phase as being the “third era of the US-India relations” which would have four platforms of cooperation –global security, human development, economic activity and science and
Economic Relations
The growing economic partnership between the US and India has been one of the pillars of the transformed bilateral relationship. In the Joint Statement issued in 2009, launch the India– US Financial and Economic Partnership to strengthen bilateral engagement on macro-economic, financial, and investment-related issues.
India has emerged as a thriving market for US exports, which nearly tripled in value between 2004 and 2007. The upward trend has continued in 2008, though at a slower rate and declined in 2009 due to the global economic downturn. The total trade during 2008 was US$43.4 billion (India’s exports to US –25.7 and US exports to India-17.7) as compared to US$21.6 billion (15.5 + 6.1) in the year 2004.
India has emerged as a thriving market for US exports, which nearly tripled in value between 2004 and 2007. The upward trend has continued in 2008, though at a slower rate and declined in 2009 due to the global economic downturn. The total trade during 2008 was US$43.4 billion (India’s exports to US –25.7 and US exports to India-17.7) as compared to US$21.6 billion (15.5 + 6.1) in the year 2004.
Following table lists the major exports to India and USA:
| Major US exports to India | Major India’s export to the US |
| Aircraft and aviation-related products | Gems and jewelry |
| Fertilizers | Textiles |
| Machinery | Pharmaceuticals |
| Precious stones and metals | Organic chemicals |
| Organic chemicals | Engineering goods |
| Optical instruments | Iron & steel products |
| Medical instruments |
The US is the third largest contributor of foreign direct investment (FDI) in India.
The overall FDI flow into India from the US during April 2000-February 2010, according to the Department of Industrial Policy and Promotion was US$ 8.21 billion. Companies like
at their Ames Research Centre in 2008 to carry out lunar exploration. A
Further U.S. interest in South Asia focuses on ongoing tensions between India and Pakistan rooted largely in competing claims to the Kashmir region and in “cross-border terrorism” in both Kashmir and major Indian cities. In the interests of regional stability, the United States strongly endorses an existing, but currently moribund India-Pakistan peace initiative, and remains concerned about the potential for conflict over Kashmiri sovereignty to cause open hostilities between these two nuclear-armed countries. The United States seeks to curtail the proliferation of nuclear weapons and ballistic missiles in South Asia. Both India and Pakistan resist external pressure to sign the major nonproliferation treaties. In 1998, the two countries conducted nuclear tests that evoked international condemnation. Proliferation-related restrictions on U.S. aid were triggered; remaining sanctions on India (and Pakistan) were removed in late 2001.
Upon the seating of a new U.S. President in 2009, most experts expected general policy continuity with regard to U.S.-India relations. Yet some look to history in anticipating potential friction on issues such as nonproliferation (where India may be pressed to join such multilateral initiatives as the Comprehensive Test Ban Treaty and the Fissile Material Cutoff Treaty); human rights and Kashmir (where the new Administration could become more interventionist); and bilateral economic relations (where the new Administration may pursue so-called protectionist policies). Yet President Obama’s statement that, “Our rapidly growing and deepening friendship with India offers benefits to all the world’s citizens,” suggests that the bilateral strategic partnership likely will continue and even deepen.
India has been in the midst of major and rapid economic expansion. Many U.S. business interests view India as a lucrative market and candidate for foreign investment. The United States supports India’s efforts to transform its once quasi-socialist economy through fiscal reform and market opening. Since 1991, India has taken major steps in this direction and coalition governments have kept the country on a general path of reform, yet there is U.S. concern that such movement is slow and inconsistent. India is the world’s fourth-largest emitter of greenhouse gases. Congress also continues to have concerns about abuses of human rights, including caste- and gender-based discrimination, and religious freedoms in India. Moreover, the spread of HIV/AIDS in India has been identified as a serious development. This report will be updated regularly.
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