The President of the United States of America, The Honorable Donald J. Trump hosted the Prime Minister of India, Shri Narendra Modi for an Official Working Visit in Washington, DC on February 13, 2025. They launched a new initiative – the “U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century” – to drive transformative change across key pillars of cooperation. Here, we have discussed in detail India-US Relations which is helpful for SSB Interview.
Historical background
( 1947- 1971) Phase 1
- In the 1965 war with Pakistan, the US maintained a neutral stance despite being an ally of Pakistan.
- But in the 1971 war, the US sided with Pakistan and India signed a treaty of peace and friendship with the USSR.
- During the Cold War, the USA had no India-specific policy but a cumulative South Asia policy.
(1971- 1991) Phase 2
- 1974- the focus was India’s nuclear non-proliferation, Pokhran experiment further deteriorated relations.
- 1982- Indira Gandhi visited the US. The main concern was to address India’s nuclear program. However, there was no achievement.
( 1991- 2005) Phase 3
- 1991- Unipolar world, new economic policy signed by India i.e. liberalization, privatization, globalization, and search for new economic partners across the globe.
- India, Russia, and China to form the RIC triangle.
- India does not join NPT (Non-proliferation Treaty) and CTBT(Comprehensive Nuclear Test Ban Treaty)
- 1999- US sided with India in the Kargil war
- 2000- Bill Clinton visited India after 22 years and this is the beginning of a strategic partnership.
- 2001- The US lifted sanctions and called India a natural ally.
- The strategic partnership led to the foundation of civil nuclear cooperation.
- Manmohan Singh paid a visit to the US and finalized the 123 agreement.
- In 2016 the USA granted India the status of a major defense partner.
Significance of India-US relations
1. Economic Growth: Strong economic ties enhance bilateral trade and investment. The U.S. is India’s 2nd largest trading partner in 2023. The bilateral trade between the two countries has risen by 72% between 2017-18 and 2022-23.
2. Defense Collaboration: Strategic defence agreements like the LEMOA (Logistics Exchange Memorandum of Agreement) and COMCASA (Communications Compatibility and Security Agreement) facilitate deeper military cooperation and interoperability. E.g. Joint military exercises such as Yudh Abhyas.
3. Technological Partnership: Collaboration in critical technologies enhances innovation competitiveness. E.g. India-US initiative on critical and emerging technology (ICET).
4. Cultural Exchange: Indeed vibrant diaspora and educational exchanges enrich cultural ties and foster mutual understanding between the two societies. Example: Over 200,000 Indian students study in the U.S.
5. Quad Alliance: The Quadrilateral Security Alliance (QUAD)enhances regional security cooperation, addressing challenges in the Indo-Pacific and promoting democratic values. E.g. The Quad’s initiatives in vaccine distribution and maritime security.
6. Climate Cooperation: Joint efforts in addressing climate change strengthen global environmental governance and sustainable development initiatives. E.g. The US and India clean energy partnership.
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Challenges in India-US relations
1. Trade Imbalances cause friction, affecting sectors like agriculture and manufacturing. U.S. concerns over India’s tariffs on agricultural products have led to trade disputes.
2. Data Privacy Concerns: Differing approaches to data protection and cross-border data. The U.S. seeks free data flow, while India emphasizes data localization for privacy
3. Defence Procurement Hurdles: Bureaucratic delays and disagreements slow defence collaboration. E.g. The delay in finalizing the Predator drone deal.
4. Visa Restrictions: Stricter U.S. visa regulations, particularly for H1-B visas, limit Indian IT professionals’ mobility and affect the tech industry.
5. Intellectual Property (IP) Rights: Disagreements over IP protections, particularly in pharmaceuticals, impact trade negotiations.
6. Geopolitical Differences: Diverging views on Russia, Iran, and other regional conflicts sometimes challenge bilateral strategic cooperation.
7. Economic Tensions: The Atmanirbhar Bharat campaign has exacerbated the view in the US that India is increasingly becoming a protectionist closed market economy.
Way forward for better ties between both of the countries
- Defense Technology Transfers: Streamline ITAR (international traffic in arms regulation) regulations and fast-track Reciprocal Defense Procurement (RDP) agreements.
- Trade & Economic Diversification: Finalize BTA by 2025, also expand green energy and high-tech manufacturing ties.
- Nuclear & Energy Security: Amend CLNDA (Civil Liability for Nuclear Damage Act) for nuclear projects and strengthen oil reserve collaborations.
- Technology & AI Cooperation: Enhance AI, semiconductors, and quantum research while expanding cybersecurity.
- Counterterrorism & Security: Strengthen Indo-Pacific naval patrols and enhance joint counterterrorism initiatives.
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Conclusion
The India-U.S. Comprehensive Strategic Partnership is evolving with deeper defence, trade, energy, and technology ties. Initiatives like COMPACT, and TRUST, (“Transforming the Relationship Utilizing Strategic Technology”) along with Mission 500 (aiming to more than double total bilateral trade to $500 billion by 2030) enhance regional security and economic growth. Overcoming trade barriers, tech transfer limits, and visa issues is key to long-term success.