Partnership of Equals – India USA Relations
Context:
- Recently, Union Commerce and Industry Minister emphasized that the bilateral trade between India and the US has been the highest in recent years and that the India’s target of $2 trillion global exports by 2030 is achievable with the help of such partnerships.
State of India-US relations:
Economic relations:
- The bilateral goods and services trade between the two countries has almost doubled since 2014, exceeding US USD 191 billion in 2022 and target is to achieve USD 500 billion by 2025.
- The US is India’s largest exporter and trade partner, while India is the
- 7th largest trading partner for the US in 2021.
- The US is also the third biggest investor in India with a cumulative
- Foreign Direct Investment (FDI) inflow of USD 56,753 million from April 2000 to September 2022.
- India-US signed bilateral Strategic Energy Partnership in 2018.
Strategic relations:
- “Strategic Partnership” agreement of 2005 was upgraded to “Comprehensive Global Strategic Partnership” agreement in 2020.
- India-US defence cooperation is based on “New Framework for India-US Defence Cooperation”, which was renewed for a period of ten years in 2015.
- India has signed all four ‘Foundational Defense Agreements’ and has achieved the status of ‘Major Defence Partner’. These include
- General Security of Military Information Agreement (GSOMIA) in 2002
- Logistics Exchange Memorandum of Agreement (LEMOA) in 2016
- Communications Compatibility and Security Agreement (COMCASA) in 2018
- Basic Exchange and Cooperation Agreement (BECA) in 2020
- Bilateral military exercises and defense exchanges like Tiger Triumph (triservice), Yudh Abhyas (Army); Vajra Prahar (Special Forces); RIMPAC; Red Flag, PASSEX and MALABAR multilateral exercises are important.
- Civil Nuclear Agreement or “123 Agreement” 2008 is a bilateral agreement for peaceful nuclear cooperation which governs civil nuclear trade between American and Indian firms to participate in each other’s civil nuclear energy sector.
- 2+2 Annual Ministerial Dialogue since 2019: It is led by the Foreign and the Defence Ministers of India and the U.S.
- The iCET or US-India Initiative on Critical and Emerging Technologies 2022: It is managed by the National Security Councils of both countries. Under the initiative, 6 areas of cooperation have been identified: Scientific research and development, Quantum Computing, Artificial intelligence, Defence, innovation.
- India-U.S. have signed Cyber Security Framework in 2016.
- India-U.S. Science and Technology Cooperation Agreement signed in 2005, which was renewed for a period of ten years in 2019.
Global relations:
- India joined Quad grouping 2004: It reiterated their common vision for a free, open and inclusive Indo-Pacific region. The three practical areas of cooperation include affordable and equitable Covid 19 vaccine access for the Indo-Pacific; strengthening climate actions; and critical and emerging technology.
- India-U.S. Counter-Terrorism Cooperation Initiative 2010: It aims to expand collaboration on counterterrorism, information sharing and capacity building.
- In 2022, India joined I2U2: A minilateral of India, Israel, United States (US), and United Arab Emirates (UAE) calling the alliance as an ad-hoc, informal, issue-specific and geoeconomic initiative.
Diaspora ties:
- Indian diaspora in US is very strong at around 4.5 million which is around 1% of its population. Most are having powerful positions within the technology and political domains.
Issues and Challenges in India-US relations:
Economic issues:
- Trade Disputes: In 2020, US removed India from its Generalized System of Preference (GSP) program, which gave Indian products such as textiles and engineering goods, preferential or duty-free access to the American markets.
- Tariff War: India levied high tariffs on US products like 28 American goods, including apples, walnut, iron and steel products, medical devices and ethanol while US levied tariffs on steel and aluminium products impacting Indian exports.
- WTO disputes : India USA are involved in WTO disputes on issues like, Capping prices of medical devices by India, greater Indian market access for American agriculture and dairy products, Steel and aluminium products, export related measures by India, solar panel issue, etc.
- IPR conflicts – India is on U.S.’s “Priority Watch List” which identifies countries which are a concern for US intellectual property rights.
- Currency manipulator tag for India – Recently, the United States added India to a related ‘monitoring list’.
Global Issues:
- India’s abstaining from UN resolutions on Russia, Iran, etc. and importing oil from Iran and defence equipments from Russia like S-400 missiles.
- H1-B Visa Issue: It affects the prospects of Indian youth for education and employment opportunities in the US.
- Tricky issue of data localization has also caused some irritation in the India-US relations.
- Transfer of Technology and funding has been a sticky issues in climate change negotiations with the US.
- Reform in the UNSC has also been pending.
Way Forward:
- Comprehensive and strategic partnership between the two countries is based on the strong foundation of shared values, commitment to democracy, rule of law, transparency, freedom, etc. Further 5Ts – Talent, Technology, Tradition, Trade, and Trusteeship – can boost India-US relationship. Need is for both countries to iron out differences and promote joint development ensuring technology transfer for mutual benefit and achievement of global and individual goals.
