India-U.S. Ties Have Strong Foundation 

Syllabus: GS2/ International Relations

Context

• The White House recently reaffirmed the strong foundation of India-U.S. bilateral relations amidst the controversy of bribery allegations against Indian businessman Gautam Adani.

Overview of India and US Bilateral Relations

• Since India’s independence, ties with the United States have weathered the Cold War era distrust and estrangement over India’s nuclear program. 
  • Relations have warmed in recent years and cooperation has strengthened across a range of economic and political areas.
• Bilateral Trade: The bilateral trade between the two countries has risen by 72 percent between 2017-18 and 2022-23.
  • The US accounted for 18 percent of the gross FDI inflows into India during 2021-22, ranking second behind Singapore.
  • US is the largest trading partner of India with overall bilateral trade in goodsandservices of $190.1 billion for calendar year 2023
• Defense and Security: India and the US have signed a troika of “foundational pacts” for deep military cooperation, beginning with the Logistics Exchange Memorandum of Agreement (LEMOA) in 2016, followed by the Communications Compatibility and Security Agreement (COMCASA) after the first 2+2 dialogue in 2018, and then the Basic Exchange and Cooperation Agreement (BECA) in 2020.
  • In 2016, the United States elevated India to a major defense partner.
• Space: Artemis Accords signed by India established a common vision for the future of space exploration for the benefit of all humankind.
• Multilateral Cooperation: India and the United States cooperate closely in multilateral organizations and forums, including the United Nations, G20,, International Monetary Fund, World Bank, and World Trade Organization.
  • Together with Australia and Japan, the United States and India convene as the Quad, a diplomatic network, to promote a free and open Indo-Pacific.
• Nuclear Cooperation: Civil Nuclear Deal was signed in 2005, under the agreement, India agreed to separate its civil and military nuclear facilities and place all its civil resources under International Atomic Energy Agency (IAEA) safeguards.
  • In exchange, the United States agrees to work toward full civil nuclear cooperation with India. 
• New initiatives: Several new initiatives have been announced like GE-HAL deal to manufacture jet engines in India and the initiative on Critical and Emerging Technology (iCET), to bring revolution between the relations of the two nations.

Divergence in relations

• Limited Utility: India’s utility to the US in an Indo-Pacific conflict, such as a Chinese invasion or naval blockade of Taiwan, is likely limited.
  • In the event of US military involvement in Taiwan’s defense, India would likely avoid entanglement in such a US-China conflict.
• The US seeks greater alignment from its allies against Russia: India is viewed by the US and the West as opportunistically buying more oil from Russia amid the war.
• Defence Relations with Russia: The US is concerned about India’s acquisition of arms like the S-400 air defense system, as it strengthens Russian power.
• Trade Protectionism: India’s high tariffs and the U.S.’s emphasis on intellectual property rights strains the trade relations.
• Human Rights and Democratic Norms: The U.S. has raised concerns over India’s press freedom and religious tolerance, which is viewed as interference in internal matters of India.

Concerns for India

• Economic Stability: Issues like the Adani controversy highlight vulnerabilities in India’s corporate governance that have the possibility to deter U.S. investors.
• The Russia-Ukraine conflict has shifted the focus of the US away from China, and has, therefore, contributed to considerably eroding the strategic convergence between India and the US.
• Further, the war in the Middle East has diverted US attention away and Indo-Pacific in general and India, in particular, have suffered neglect.

Concluding remark

• India-U.S. relations are multifaceted, marked by both cooperation and divergence. 
• However, the strategic convergence in addressing global challenges underscores the resilience of this partnership.

Source: TH