India US Relations 2023

Introduction

The India US relations are intricate and multidimensional, including a range of topics such as diplomacy, trade, security, and interpersonal interactions. In recent years, the bilateral relations between the two nations have undergone major changes. In order to foster long-term supply chain stability and strengthen security and defense cooperation between the two nations, India and the United States have agreed to begin talks for a “Security of Supply” (SoS) arrangement and a “Reciprocal Defence Procurement” (RDP) agreement.

What are the Key Factors that have Shaped the India US relationship?

1. Defense and Security Cooperation: The relationship between India US now rests on a critical foundation of defense and security cooperation. Increased cooperation in areas including defense technology transfers, joint military drills, and intelligence sharing has resulted from shared concerns about terrorism, regional security issues, and the need for maritime security.
2. Evolution of Foreign Policies: Their connection has become stronger as a result of the development of both India’s and the United State’s foreign policies. A favorable atmosphere for greater collaboration has been created by policy changes, such as India’s Look East Policy and Act East Policy and the US’s increased attention on the Indo-Pacific area.
3. Economic Interdependence: Economic reasons have been crucial in forming the relationship between India and the US. The amount of trade and investment has increased dramatically, and both nations are aware of the potential for much more economic cooperation. One of India’s main commercial partners is the United States, and India is now one of the countries that invest abroad most quickly in that country.
4. Shared Democratic Values: Both India and the United States are thriving democracies that uphold the rule of law, democratic values, and personal liberties. The development of a feeling of shared humanity and understanding has benefited greatly from this shared framework of democratic administration.
5. Strategic Convergence: Strategic concerns and shared interests between the two nations have served as the foundation for cooperation. Maintaining regional and global stability, combating terrorism, safeguarding maritime security, and advancing a free and open Indo-Pacific area are all important goals for both India and the United States.

Also Read: India Maldives Relations 2023

What are the Major Highlights of the Agreement?

1. Civil Nuclear Agreement (2008): The Civil Nuclear Agreement between the United States and India, sometimes referred to as the 123 Agreement, was a turning point in the two countries’ relations. It allowed for the exchange of civilian nuclear material between the two nations, giving India access to nuclear fuel and technologies for its civilian nuclear program.
2. Strategic and Commercial Dialogue: Since its inception in 2015, the Strategic and Commercial Dialogue has provided a forum for high-level conversations between the two nations on a variety of strategic and economic concerns. It includes a variety of industries, including commerce, investment, energy, defense, and counterterrorism.
3. India-US Trade Policy Forum: In order to overcome trade and investment impediments and advance bilateral economic cooperation, the India-US Trade Policy Forum was created in 2005. It emphasizes improving market accessibility, safeguarding intellectual property, and addressing trade imbalances.
4. Assembling Electric Jets in India: The agreement for General Electric GE-414 planes to be assembled in India was negotiated by both parties.
5. Capacity Building and Infrastructure Development: Building capacity, includes the creation of strategic infrastructure and maritime domain awareness (MDA).In particular, Boeing, which recently signed a massive civil aircraft agreement with Air India, should increase their sourcing from India. The construction of MRO (Maintenance, Repair, and Overhaul) facilities by US businesses in India to service the equipment used by the Indian military and by the country’s military.

How has the India US Partnership Evolved in the Areas of Defense and Security Cooperation?

1. Defense Trade and Technology Transfer: There has been a significant surge in defense trade between India and the United States. The two nations have entered into defense agreements that include the acquisition of cutting-edge defense tools and platforms, including transport planes, helicopters, and missile defense systems. India has also been recognized by the United States as a significant defense partner, allowing for improved technology transfer and collaboration in the defense industry.
2. Joint Military Exercises: Regular combined military drills between the two nations have been held to improve capability and interoperability. A greater level of cooperation among the Quad nations is shown in the expansion of the Malabar naval exercise, which was originally bilateral between India and the United States and now includes Japan and Australia.
3. Defense Agreements: To strengthen defense cooperation and make information exchange easier, India and the United States have inked a number of defense accords. There are three of them: the Basic Exchange and Cooperation Agreement (BECA), the Communications Compatibility and Security Agreement, and the Logistics Exchange Memorandum of Agreement (LEMOA). These agreements, in turn, make it possible to share geospatial intelligence and provide logistical support.
4. Counterterrorism Cooperation: India and the United States have worked closely together to combat violent extremism and fight terrorism. They have collaborated to dismantle terrorist networks, shared intelligence, run collaborative counterterrorism training programs, and performed cooperative counterterrorism exercises.
5. Regional Security and Maritime Cooperation: Regional security cooperation between the two nations has improved, especially in the Indo-Pacific area. They have emphasized the value of respecting international law, freedom of navigation, and amicable conflict settlement. Both India and the US have participated in multilateral naval drills as well as combined naval exercises.

How have relations between India and the US been?

1. Economic Relations
   • In 2022–2023, the U.S. will overtake China as India’s largest trading partner as their economic connections grow.
   • When compared to 2021–2022, bilateral trade between India and the U.S. rose by 7.65%, reaching USD 128.55 billion in 2022–2031.
   • In 2022–23, exports to the United States increased by 2.81% to USD 78.31 billion from USD 76.18 billion, while imports increased by around 16% to USD 50.24 billion.
2. International Cooperations
   • The United States supported a restructured UN Security Council that includes India as a permanent member and welcomed India’s two-year membership in 2021.
   • The United States, Japan, Australia, and India come together as the Quad to advance a free and open Indo-Pacific and bring concrete advantages to the area.
   • In addition, India is one of the 12 nations working with the US on the IPEF (Indo-Pacific Economic Framework for Prosperity).
   • The United States is a discussion partner at the Indian Ocean Rim Association (IORA), where India is a member.
   • The United States joined the United States Agency for International Development (USAID) in 2022 and the International Solar Alliance, which has its headquarters in India, in 2021.

What is The Way Forward?

• A free, open, and rule-bound Indo-Pacific area depends on the cooperation of the two nations.
• For US and Indian businesses, the unmatched Demographic Dividend opens up a world of possibilities for production, commerce, and investment.
• In a global system that is experiencing an unparalleled transition, India is emerging as a key participant. It will take advantage of the circumstances at hand to look for chances to advance its most important interests.

Conclusion

Over the years, there have been substantial changes in the relationship between India and the US. The two nations have transformed from a remote relationship in India’s early years of independence to key allies with extensive cross-sectoral collaboration. Increasing convergence of interests shared democratic ideals, and a desire to advance regional peace and world prosperity define the relationship between the US and India. The alliance has grown in several sectors, including commerce, investment, energy, and climate change, counterterrorism, and people-to-people contacts.

Frequently Asked Questions (FAQs)

Sources:

• Joint Statement from the United States and India | The White House
• Reasons why 2023 is one of the most consequential years in the history of India-US relations – The Economic Times (indiatimes.com)
• United States-India Relations – United States Department of State
• The U.S.–India Relationship Is Key to the Future of Tech (hbr.org)
• America and India Expand Their Partnership – Foreign Policy
• The United States’ 2023 Agenda for Building a Stronger Relationship with India (csis.org)
• R47597 (congress.gov)