India-US Relations: Successes, Challenges & Way Forward

Table of contents

Context (IE | IE | IE): During the Indian PM’s visit to the US, the US administration offered to restart the decade-old plan to transfer jet engine technology to India.

Recent Developments

Cybersecurity Cooperation: India and the US are enhancing collaboration in cybersecurity, defence, and space, emphasising secure digital infrastructure.
Drone Procurement: India will acquire 31 MQ-9B drones, enhancing surveillance and intelligence in land, sea, and air operations.
Defense Co-production: Both nations agreed to co-produce jet engines and precision munitions, strengthening defence industrial ties.
Semiconductor Plant: A semiconductor facility is being established in India, contributing to national security and technological advancement.

India-US Relations: Evolution

Cold War Era: India maintained non-alignment while the US had stronger ties with Pakistan.
Post-Cold War Engagement: After the Cold War, India and the US began building closer diplomatic ties.
The US-India Civil Nuclear Agreement in 2005 marked a major milestone in strategic partnership.
Foundational Agreements: LEMOA, COMCASA, BECA, GSOMIA.

Significance of India-US Relations

Economic Growth: Strong economic ties enhance bilateral trade and investment, contributing to job creation and economic development in both nations. U.S. is India’s 2^nd largest trading partner in 2023. The bilateral trade between the two countries has risen by 72 per cent between 2017-18 and 2022-23.
Defense Collaboration: Strategic defence agreements like the LEMOA and COMCASA facilitate deeper military cooperation and interoperability. E.g. Joint military exercises such as Yudh Abhyas.
Technological Partnership: Collaboration in critical technologies enhances innovation competitiveness. E.g. India–U.S. Initiative on Critical and Emerging Technology (ICET)
Cultural Exchange: A 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.
Quad Alliance: The Quadrilateral Security Dialogue (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.
Climate Cooperation: Joint efforts in addressing climate change strengthen global environmental governance and sustainable development initiatives. E.g. The U.S. and India clean energy partnership.

India-US Defence Relations

Context (TP): With the new government, bipartisan support for the US-India relationship in the US, the defence collaboration between the two nations is expected to grow significantly.

Historical Milestones in India -US Defence relations

2005: Initiation of strategic dialogues, marking deeper engagement between India and the US.
2016: The US designated India as a “Major Defense Partner,” enhancing access to advanced technologies and collaboration.
2016-2018: The US and India signed several vital agreements:
- LEMOA (Logistics Exchange Memorandum of Agreement): Facilitated mutual logistics support.
- COMCASA (Communications Compatibility and Security Agreement): It facilitates secure communication between Indian and U.S. militaries for interoperability.
- BECA (Basic Exchange and Cooperation Agreement): It allows sharing of geospatial intelligence for enhanced military precision and navigation.
- GSOMIA (General Security of Military Information Agreement): It protects the exchange of classified information, fostering intelligence collaboration.
2018: India received Strategic Trade Authorization Tier 1 (STA-1) status for easier access to US military technology.
2018: Establishment of the 2+2 Ministerial Dialogue to deepen strategic cooperation.
2019: First tri-service exercise, “Tiger Triumph,” and signing of the Industrial Security Annex (ISA) for US companies in Indian defence production.
2020: Launch of the Initiative on Critical and Emerging Technology (iCET) to drive collaboration in AI, quantum computing, and cybersecurity.
2021: Establishment of the Maritime Information Sharing Technical Arrangement (MISTA) for improved maritime domain awareness.
2021-2022: Progress in major equipment deals, including MQ-9B Sky Guardian drones and F-414 fighter jet engines.
2023: Launch of the India-US Defense Acceleration Ecosystem (INDUS-X) under iCET to foster collaboration among defence companies, investors, and research institutions.

Credits: The print

Upcoming Initiatives and Anticipated Developments

Security of Supply Arrangement (SOSA): To ensure reliable and secure supply of defense equipment and technology. Negotiations are progressing to enhance supply chain resilience.
Reciprocal Defense Procurement Arrangement (RDP): To streamline defense procurement processes and increase market access for Indian manufacturers, thus improving procurement efficiency.
Joint Production of Stryker Armoured Combat Vehicles: To boost joint defense capabilities.
Enhanced Public-Private Collaborations: To establish incubator centres, joint innovation funds, and support for startups via Defense Advanced Research Projects Agency (DARPA) and the Defense Innovation Unit (DIU).
Streamlined Regulatory Reforms: To simplify and expedite defense export and technology transfer regulations, address International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR) complexities and improve STA-1 exemptions for smoother transactions.

Challenges in India-US Relations

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.
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
Defense Procurement Hurdles: Bureaucratic delays and disagreements slow defence collaboration. E.g. The delay in finalizing the Predator drone deal.
Visa Restrictions: Stricter U.S. visa regulations, particularly for H1-B visas, limit Indian IT professionals’ mobility and affect the tech industry.
Intellectual Property (IP) Rights: Disagreements over IP protections, particularly in pharmaceuticals, impact trade negotiations.
Geopolitical Differences: Diverging views on Russia, Iran, and other regional conflicts sometimes challenge bilateral strategic cooperation.

Way Forward

Resolve Trade Disputes will strengthen bilateral economic ties. E.g. Negotiating lower tariffs on steel and aluminium imports could enhance mutual trade benefits.
Enhanced Tech Collaboration: Aligning data privacy standards and expanding cybersecurity cooperation. E.g. Establishing a US-India Cybersecurity Forum.
Streamline Defense Procurement: Simplifying defence procurement processes and speeding up technology transfers will enhance defence cooperation. E.g. Implementing the Defense Technology and Trade Initiative (DTTI) to expedite projects like the Joint Advanced Tactical Ground Station (JATGS).
Easing H1-B visa restrictions will benefit both countries’ tech industries and professional exchanges.
Strengthening IP Dialogue through diplomatic channels will support mutual trade benefits. E.g.: Form an India-US IP Working Group.
Enhance ICET Cooperation: Strengthening the India–U.S. Initiative on Critical and Emerging Technology (ICET) will promote collaboration in cutting-edge sectors.
Regional Diplomacy: Closer coordination on geopolitical issues like Indo-Pacific security and terrorism will advance shared strategic goals.