TopicsGeneral TopicsIndia – United States Relations 

India – United States Relations 

The India and United States Relationship dates back to India’s independence movement and has remained strong long after the country gained independence from the United Kingdom in 1947. Currently, the United States has close relations with Japan and has expanded collaboration on issues such as counterterrorism and countering Chinese influence in the Indo-Pacific. In this article, let us learn more about India and United States relations, history, economics, and strategic relations. It is advised to read the complete article in detail.

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    India and United States Relations

    In the twenty-first century, Indian foreign policy has sought to capitalize on India’s strategic autonomy in order to protect sovereign rights and advance national interests in a multipolar world. Presidents George W. Bush and Barack Obama both demonstrated accommodation to India’s core national interests while also acknowledging outstanding concerns.

    Due to increased bilateral trade and investment, collaboration on international security issues, India’s participation in the UN Security Council decision-making process, improved representation in trade and investment forums (World Bank, IMF, APEC), support for admission to multilateral export control regimes (MTCR, Wassenaar Arrangement, Australia Group), and joint manufacturing through technology sharing arrangements, these have all become significant turning points and indicators of the US-India relationship’s speed and progress.

    The year 2016 saw the signing of the Logistics Exchange Memorandum of Agreement between India and the United States. Also, the US designated India as a major defense partner. Additionally, both India and the United States relations have increased their collaboration in multilateral organizations like The Quad and the I2U2 Group.

    India and the United States Relationship have worked together on trade, defense and security, education, science and technology, civil nuclear energy, space technology and applications, the environment, and health.

    Interactions between people in the two countries energize and strengthen the bilateral relationship. Regular contacts at the political and official levels have taken place, as has a broad dialogue on bilateral, regional, and global issues.

    With a growing convergence of interests on bilateral, regional, and global issues, bilateral relations between the United States and India have developed into a “global strategic partnership” grounded in shared democratic values. The Indian government’s emphasis on development and good governance has created an opportunity to renew bilateral ties and strengthen cooperation under the slogans “ChaleinSaathSaath: Forward Together We Go” and “SanjhaPrayas, Sab ka Vikas” (Shared Effort, Progress for All), respectively, adopted during Prime Minister Modi and President Obama’s first two summits in September 2014 and January 2015.

    In a summit-level joint statement issued in June 2016, India and the United States were described as “enduring global partners in the twenty-first century.”

    India and United States Relations Trade and Economic

    India receives a significant amount of direct investment from the US. Since the start of Indian direct investments overseas in 1992, Indian corporations and registered partnership firms have had the ability and willingness to invest up to 100% of their net worth in foreign businesses.

    Manufacturing makes up the majority of India’s outgoing investments, making up roughly 55% of all foreign capital invested in the nation. Non-financial services (software development) are the second largest category, accounting for approximately 35% of total investments.

    Since 2021, the United States has been India’s most important trading partner. India is the seventh largest trading partner of the United States. Information technology services, textiles, machinery, gems, diamonds, chemicals, iron and steel products, coffee, tea, and other edible food products are among the most important items imported from India. Aircraft, fertilizers, computer hardware, scrap metal, and medical equipment are among the most important American imports into India.

    The United States is also India’s largest investment partner, with a direct investment of $10 billion (representing 9% of total foreign investment). Americans have made significant foreign investments in power generation, telecommunications, ports, roads, petroleum exploration and processing, and mining in Asian countries.

    President Bush and Prime Minister Manmohan Singh established the Trade Policy Forum in July 2005, with a representative from each country in charge.

    The Tariff and Non-Tariff Barriers group’s goals include agreeing that insecticides manufactured in the United States can be sold throughout India. India had also agreed to reduce special regulations on trading carbonated beverages and many medicinal drugs, as well as lowering restrictions on non-agricultural imports.

    Both countries have agreed to talk about improving aspects of Indian regulation in the trade of jewelry, computer parts, motorcycles, fertilizer, and tariffs on American boric acid exports.

    India and United States Military Relationship

    The United States has four “foundational” agreements with its defense partners. The agreements are described by the Pentagon as “routine instruments that the United States uses to promote military cooperation with partner nations.” According to American officials, the agreements are not required for bilateral defense cooperation, but they would make it easier and less expensive to carry out activities such as refueling aircraft or ships in each other’s countries and providing disaster relief.

    • The General Security of Military Information Agreement (GSOMIA), the first of the four agreements, was signed in 2002 by India and the United States. The agreement allows the two countries to share military intelligence while also requiring each country to protect the classified information of the other.
    • The two countries signed the second agreement, the Logistics Exchange Memorandum of Agreement (LEMOA), on August 29, 2016. The LEMOA allows either country’s military to use the bases of the other for resupply or repair. The agreement does not make the provision of logistical support binding on either country and requires individual clearance for each request.
    • During the first 2+2 dialogue in September 2018, the Communications Compatibility and Security Agreement (COMCASA), the third agreement, was signed.
    • The two nations can share secure communication and information on approved equipment during bilateral and multinational training exercises and operations thanks to this India-specific version of the Communications and Information Security Memorandum of Agreement (CISMOA).
    • The fourth agreement, the Basic Exchange and Cooperation Agreement (BECA), signed in 2020, allows India and the US National Geospatial-Intelligence Agency (NGA) to exchange unclassified and controlled geospatial products, topographical, nautical, and aeronautical data, products, and services.

    India and United States Relationship

    India and United States relationship grew strategically in the early 1960s, as the rise of the People’s Republic of China worried policymakers in Washington, D.C. Washington was concerned about China’s assertiveness in Tibet, its role in the Korean War, and other such actions. During the late 1950s, when relations between India and China were strained, the Americans saw an opportunity to use the situation to promote India as a counterweight to China.

    After the Cold War ended, Indian and American interests converged in a number of areas, including counter-terrorism, democracy promotion, counter-proliferation, freedom of navigation in the Indian Ocean, and Asian power balance.

    FAQs on India-United States Relations

    How are relations between India and the United States?

    India and the United States Relations have bilateral and diplomatic relations. Through trade, investment, and connectivity, the two countries work together to promote global security and economic prosperity.

    Who is the best friend country of India?

    Japan is one of India's closest allies because the two countries maintain spiritual ties in addition to conducting business and exchanging technologies as a result of Buddhism's spread in Japan. Along with commercial collaborations, they began to share cultural ideals

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