Why the United States matters to India?
- Defence technology transfer : America remains the critical stabilizing force in Asia through its military and diplomatic power projection and commitments to the region.\
- To tackle raising influence of China : China has chosen episodically to ignore global nonproliferation norms, a pattern of behaviour that the United States has assiduously sought to curtail. Though no nation can a priori prevent future Chinese proliferation activities, only a U.S.-led international effort has any chance of success.
- Normalise Pakistan : India will be better able to protect its national interests in Pakistan and Afghanistan in coordination with the United States.
- Economic Factors : The United States will continue to be important for India’s economic success. India’s economy has been built around unleashing domestic consumption rather than relying on exports.The United States has also remained one of the top sources of foreign direct investment in India, bringing important managerial expertise, capital, and technology with it to the dynamic Indian market.
- Security and freedom of navigation : The United States has a long-term commitment to maintain security and freedom of navigation on the high seas, something critical to India as a net energy importer.
- To influence in global governance institutions : Washington retains unparalleled power and influence in global governance institutions..As India seeks a larger role in the UN Security Council and international monetary institutions, U.S. support for India will be critical to reforms that benefit New Delhi’s national interests.
- Strong Diaspora : The 3.5-million-plus strong Indian American community is an important ethnic group in the U.S., accounting for about 1% of the total population in the country. Indian American community includes a large number of professionals, business entrepreneurs and educationalists with increasing influence in the society. The two countries have been working together to facilitate travel of their respective citizens, and to this end, an MOU has been signed in June 2016 to facilitate India’s joining of the Global Entry Programme for expedited immigration for eligible Indian citizens at U.S. airports.
India-USA: Two Pillars of Co-operation
- Strategic & Defence
1)Strategic & Defence
- Exercises : Malabar Exercise , Yudh Abhyas, Shathrujeet
- Motion moving on to give ‘Defence Partner’ Status to India by US
- Defence Trade and Technology Initiative (DTTI), 2015 : Framework to promote co-development
- Indian Rapid Reaction Cell – Situated in Pentagon for high level technology transfer [faster resolution of issues and fast track military related affairs
- Major agreements :
1) Logistic Support Agreement [LSA] -Agreement for sharing military logistics apart from refuellling and berthing
Why India signed LSA ?
- India – US relations could be elevated to a new heights
- Much more helpfull to disaster relief
- Smoothen the procedures as well as expense associated with joint exercises
- India entering into defacto defence agreement thereby compromising the principle of NAM
- Asymmetrical benefit
- India would have to compromise its relations with Russia. [India have 80% of its defence import from Russis]
2)Strategic Mission for Asia Pacific for vision in Asia Pacific
Principle : Freedom of navigation in international waters…Dispute resolution with respect to UNCLOS…Stregthen APEC
- US one of the major FDI donor
- Trade policy forum to facilitate trade between India and US
- Foreign Account Tax Compliance Agreement [FATCA] : Automatic sharing of tax information
What has changed after Trump Administration ?
- Cooperation in Counter terrorism and US’s recognition of Pakistan as a major financer of terrorism
- Reiteration of Strategic mission document
- Agreement on maritime security
- H1B visa issue
- Stand on Climate change
- US – Iran relation has been deteriorating
- Rehyphenation followed in 2015 : US trying to merge Pakistan and Afganistan with South Asia and India – that is US trying to merge the special representative of Pakistan and Afganistan with that of South Asia and who deals with India as well
- Different stand on Syrian issue
- Pakistan factor also irritant on India – US relations
- US is very critical with regards to India’s IPR issue