India’s Foreign Policy and Relations with the USA

India’s foreign policy has evolved since its independence in 1947. The relationship with the United States has been particularly dynamic, marked by historical shifts, strategic partnerships, and economic ties.

Historical Background

Independence Era (1947)

After gaining independence in 1947, India adopted a non-aligned stance in international relations. This policy aimed to maintain independence from both Western and Eastern blocs during the Cold War. However, initial ambivalence marked India’s relations with the USA.

Cold War Period

During the Cold War, India leaned towards the Soviet Union, seeking military and economic support. The USA, conversely, encourageed a strong relationship with Pakistan, leading to tensions between India and the USA.

Post-Cold War (1991)

The end of the Cold War in 1991 marked a turning point. India initiated economic liberalisation, which opened the door for improved relations with the USA. This shift was characterised by increased economic cooperation and strategic dialogue.

Key Developments

1991 Economic Reforms

India’s economic reforms in 1991 attracted US interest. The liberalisation of its economy facilitated greater trade and investment opportunities, laying the groundwork for a stronger bilateral relationship.

Nuclear Tests (1998)

India’s nuclear tests in 1998 initially strained relations with the USA. The USA imposed sanctions, but this period was soon followed by diplomatic efforts to rebuild trust.

Establishment of Strategic Partnership (2000)

In 2000, the US-India Strategic Partnership was formalised. This partnership focused on enhancing cooperation in various fields, including defence, trade, and technology.

Major Agreements and Initiatives

Civil Nuclear Agreement (2005)

The Civil Nuclear Agreement established a framework for civilian nuclear cooperation. India gained access to US nuclear technology and fuel, marking milestone in bilateral relations.

Defence Cooperation

In 2016, India was designated as a Major Defence Partner by the USA. This status led to several bilateral agreements, including:

• LEMOA (Logistics Exchange Memorandum of Agreement)
• COMCASA (Communications Compatibility and Security Agreement)
• BECA (Basic Exchange and Cooperation Agreement)

Trade Agreements

Bilateral trade between India and the USA has surged, reaching a target of $500 billion. However, trade disputes over tariffs and market access have emerged, denoting the complexities of the economic relationship.

Strategic Cooperation

Counter-Terrorism

India and the USA have collaborated on counter-terrorism efforts, particularly concerning groups based in Pakistan. This cooperation is crucial for regional security.

Regional Security

The Indo-Pacific region has become a focal point for strategic cooperation. The Quad, comprising India, the USA, Japan, and Australia, aims to promote stability and security in the region.

Military Exercises

Regular joint military exercises, such as Yudh Abhyas and Malabar, enhance interoperability between Indian and US forces, reinforcing defence ties.

Economic Relations

Trade Volume

In 2021, two-way trade reached approximately $146 billion. Major exports from India include textiles, pharmaceuticals, and IT services, while imports include machinery, aircraft, and oil.

Investment

The USA has made substantial investments in India, particularly in technology, pharmaceuticals, and infrastructure. Conversely, Indian investments in the USA focus on technology and startups, encouraging innovation.

Cultural and People-to-People Ties

Indian Diaspora

Approximately 4 million Indians reside in the USA, contributing to various sectors. The Indian diaspora plays a vital role in strengthening bilateral ties.

Educational Exchanges

Programs like the Fulbright-Nehru Fellowships promote educational exchanges between the two countries. The number of Indian students in US universities continues to rise, enhancing cultural understanding.

Challenges in Relations

Trade Tensions

Despite growing economic ties, trade tensions persist. Tariff disputes and trade imbalances create friction in the relationship.

Human Rights Concerns

The USA has expressed concerns regarding India’s human rights record. This criticism poses challenges to diplomatic relations.

Geopolitical Rivalries

India’s need to balance its relations with Russia and China complicates its partnership with the USA. Navigating these geopolitical rivalries is essential for India’s foreign policy.

Recent Developments

Biden Administration (2021)

The Biden administration has continued to strengthen the strategic partnership with India. Focus areas include climate change and technology collaboration.

Defence Procurement

Increased defence sales from the USA to India signify a deepening military relationship. This trend is expected to continue as both nations enhance their defence capabilities.

COVID-19 Cooperation

The COVID-19 pandemic prompted cooperation between India and the USA in vaccine distribution and healthcare. This collaboration telld the importance of global health security.