Strengthening India-U.S. Relations Amid Challenges and Divergences (GS Paper 2, IR)
Context
- The White House recently underscored the enduring strength of the bilateral relationship between India and the United States, despite the recent controversy surrounding allegations of bribery involving Indian businessman Gautam Adani.
Overview of India-U.S. Ties
- Since India's independence, its relationship with the United States has evolved significantly.
- Although early years were marked by Cold War tensions and disagreements over India’s nuclear program, the two countries have gradually moved towards closer cooperation.
- In recent years, their ties have expanded across several sectors, with strong progress in economic, defense, and political spheres.
Key Areas of Cooperation
Economic and Trade Relations
- India and the United States have seen a sharp increase in bilateral trade, with a 72% growth from 2017-18 to 2022-23.
- The U.S. has become India’s largest trading partner, with total trade in goods and services amounting to $190.1 billion in 2023.
- Additionally, the U.S. accounted for 18% of India’s gross Foreign Direct Investment (FDI) inflows in 2021-22, ranking second after Singapore.
Defense and Security Partnerships
- Military cooperation between the two nations has strengthened over the years.
- India and the U.S. have signed crucial defense agreements, including the Logistics Exchange Memorandum of Agreement (LEMOA), Communications Compatibility and Security Agreement (COMCASA), and the Basic Exchange and Cooperation Agreement (BECA), which facilitate deeper military cooperation.
- The U.S. also designated India as a major defense partner in 2016.
Space Cooperation
- The two countries have made significant strides in space exploration, with India’s signing of the Artemis Accords, which aim to advance the exploration and use of space for the benefit of all.
- This collaboration underscores shared interests in space exploration and technology.
Multilateral Engagement
- Both nations work closely within multilateral frameworks, including the United Nations, G20, World Trade Organization, and the World Bank.
- As part of the Quad — a strategic partnership with Japan and Australia — India and the U.S. work together to promote a free and open Indo-Pacific region.
Nuclear Cooperation
- The landmark Civil Nuclear Agreement signed in 2005 allowed for greater nuclear cooperation between India and the U.S.
- Under this deal, India agreed to separate its civilian and military nuclear programs, placing civilian facilities under international safeguards, in exchange for U.S. support in developing its nuclear energy capacity.
New Initiatives
- Recent initiatives like the GE-HAL deal to manufacture jet engines in India and the iCET (Initiative on Critical and Emerging Technologies) aim to elevate the India-U.S. relationship to new heights, particularly in advanced technologies.
Challenges and Divergences
Despite the deepening ties, several issues continue to create friction between the two countries:
Strategic Divergence
- India’s role in potential conflicts, such as a Chinese invasion of Taiwan, remains uncertain.
- While the U.S. expects alignment from its allies in such scenarios, India is likely to remain neutral, avoiding entanglement in a U.S.-China conflict.
- This divergence extends to India’s stance on Russia, particularly its purchase of Russian oil amid the ongoing Ukraine war, which has drawn concern from Washington.
Defense Relations with Russia
- India’s defense ties with Russia, especially the purchase of the S-400 air defense system, have raised alarms in the U.S.
- This relationship complicates India’s security alignment with the West, as the U.S. seeks to counterbalance Russian influence globally.
Trade Frictions
- Issues like India’s high tariffs and the U.S. focus on intellectual property rights have caused strains in trade relations.
- Both countries have had disagreements over these trade barriers, which have hindered the potential for even greater economic collaboration.
Human Rights Concerns
- The U.S. has raised concerns regarding human rights issues in India, particularly related to press freedom and religious tolerance.
- These issues are viewed by some as interference in India’s internal affairs, creating a tension in the diplomatic relationship.
Concerns for India
- India faces its own challenges in maintaining a steady relationship with the U.S.
- The controversy surrounding business figures like Gautam Adani has highlighted vulnerabilities in India’s corporate governance, which could deter U.S. investors.
- Additionally, the shifting focus of U.S. foreign policy — from China to the Russia-Ukraine war and the Middle East — has led to a reduced emphasis on the Indo-Pacific region and, by extension, on India’s strategic importance.
Conclusion
- The India-U.S. relationship remains robust, characterized by significant cooperation in key areas such as trade, defense, and space exploration.
- However, divergences in strategic priorities, defense relations with Russia, trade issues, and human rights concerns continue to pose challenges.
- Despite these differences, both nations recognize the importance of their partnership in addressing global challenges.
- The relationship’s resilience, particularly in multilateral cooperation and addressing shared interests, underscores the potential for deeper collaboration in the years ahead.
