The Prime Minister of India recently emphasized the positive trajectory in the relationships between India and the United States. Despite occasional disagreements, the two nations have steadily deepened their engagement, understanding, and friendship, all driven by mutual national interests.
The Foundation of India-US Strategic Partnership
The strategic partnership between the U.S. and India is rooted in shared values, including a commitment to democracy and upholding the rules-based international system. Both countries hold shared interests in promoting global security, stability, and economic prosperity through trade, investment, and connectivity.
Economic Relations between India and the U.S.
The U.S. emerged as India’s biggest trading partner in 2022-23 due to increasing economic ties. There was a 7.65% increase in bilateral trade between the two nations, reaching USD 128.55 billion in 2022-23 from USD 119.5 billion in 2021-22. Exports to the U.S. rose by 2.81%, while imports grew by about 16%.
India and the U.S.: International Cooperations
India and the United States closely cooperate at multiple multilateral organizations, such as the United Nations, G-20, Association of Southeast Asian Nations (ASEAN) Regional Forum, International Monetary Fund, World Bank, and World Trade Organization. India has also partnered with the U.S. on the Indo-Pacific Economic Framework for Prosperity (IPEF).
Defence Cooperation: A Deepening Alliance
India signed four significant agreements with the U.S., cementing its status as a vital defense partner. This partnership has reduced India’s historical dependence on Russia for military supplies, resulting in increased arms purchases from the U.S. over the last two decades.
Space, Science, and Technology: A Shared Frontier
The Indian Space Research Organization (ISRO) and the U.S. National Aeronautics and Space Administration (NASA) are collaborating on several projects. Most notably, they are jointly developing NASA-ISRO Synthetic Aperture Radar (NISAR). India also joined NASA’s Artemis Accords for peaceful outer space exploration.
Challenges in India-US Relations
Despite numerous shared interests and a generally robust relationship, several issues challenge the India-U.S. partnership.
U.S. Criticism of India’s Foreign Policy
The difference in foreign policy perspectives, specifically India’s non-alignment stance during the Cold War and its strategic decision regarding the Russia-Ukraine conflict, has been a point of contention.
India’s Engagement with U.S. Adversaries
India’s interactions with nations that the U.S. considers adversaries, specifically Iran and Venezuela, have raised concerns.
U.S.’ Criticism of India’s Democracy
Various U.S. organizations have criticized India’s state of democratic discourse, press and religious freedom, and the condition of minorities. These criticisms often involve reports questioning the current state of democracy within India.
Economic Tensions between India and the U.S.
Economic issues also pose challenges, with the U.S. perceiving India as increasingly protectionist due to initiatives like the Atmanirbhar Bharat Campaign.
The Way Forward for India-US Relations
To ensure an open, free, and rule-bound Indo-Pacific region, the partnership between India and the U.S. is vital. Both nations can leverage India’s demographic dividend for technology transfer, manufacturing, trade, and investment opportunities. As a key player in an evolving international system, India can use its current situation to further its essential interests.
