Raj Malhotras IAS Study Group

INDO-US RELATIONS: AN ANALYSIS

IRRITANTS
US Pakistan policy
Both aims at advancing regional security
US military aid to Pakistan in contravention of KerryLugar legislation requiring Pakistan to act verifiably
against terrorist groups on its soil to receive US aid.
Taliban
US does not consider Taliban as a terrorist organization.
US is engaged in an effort to accommodate Taliban
politically in Afghanistan in a Pakistan-brokered deal,
which is a risk to Indias security.

Test for counter-terrorism partnership between two.

UNSC Reforms
US has not clearly defined position on expansion of
UNSC.
Four export control regimes
India has been declared ready for Missile Technology
Control Regime (MTCR) as well as Nuclear Supplier
Group (NSG) membership; so far no tangible progress
has occurred.
Indo-US Nuclear Deal
With India ratifying Convention on Supplementary
Compensation, an international nuclear liability regime
governed by IAEA, supply of six Westinghouse nuclear
reactors to India seems plausible.
ECONOMIC SPIKES
Totaliser agreement
NRIs staying in USA pay taxes but do not get requisite
Social Security benefits.
WTO issues
Solar Wars (anti dumping), Disagreement on subsidies
IPR related issues
India continues to be under US Trade Representatives
scanner for not complying with their Intellectual property
Rights regime.
STRENGTH WITH A RIDER
Apart from Defense Framework Agreement, US has
become a large supplier of defense equipment to India.
Largest number of Indian joint military exercises are with
US.
Less than expected progress in defense manufacturing
under Defense Technology and Trade Initiative (DTTI).
INDIA US AND CHINA ANGLE
India has longstanding disputes with China.
2015 US-India Joint Strategic Vision for Asia-Pacific and
Indian Ocean Region specifically addresses maritime

territorial disputes involving China and, among other

things, affirmed importance of safeguarding maritime
security and ensuring freedom of navigation and freedom
of air throughout region, especially in South China Sea.
US trade and financial relations with China are vast; India
too seeks stable and economically productive ties with
China.
Task ahead
Managing China threat by both engaging closely with US
and reaching out to China.
Credibility of US rebalance to Asia and Pacific is yet to
be tested.
INDIA-US ON INDO-PACIFIC REGION
India-US to include Japan in bilateral India-US Malabar
naval exercises.
Trilateral India-US-Japan political dialogue raised from
official to Ministerial level.
Indias problems with China related to border disputes
and Chinas deepening relationship with Pakistan.
In both cases, India cannot count on US to take a position
supportive of India.
Limit of strategic partnership - falls short of supporting
Indias territorial sovereignty.
ECONOMIC RELATIONS
Mixed progress
US businesses reluctant to invest in India - India not
delivering on promises to ease doing business including
taxation issues and general economic reforms.
IT sector brought knowledge economies of India and US
closer but US is targeting this sector with higher visa
costs and increased restrictions.
FUTURE PERSPECTIVE
Collaborative economic agenda should include
Co-production and co-development of defense products
under Make in India program,
Coal gasification technologies,
Issuance of a non-FTA country waiver for India to gain
access to US fossil fuel reserves.
Partnerships in agricultural technology, civil aviation
sector, life sciences, infrastructure financing and green
financing.
NASA and ISRO joint projects/collaborations beyond
NISAR, Mars Working Group and Laser Interferometer
Gravitational-Wave Observatory (LIGO).
Bilateral dialogues should address
Visa issues in IT/ITES (i.e. outsourcing services) sectors,
Focus on exporting synergies in biotech and
pharmaceutical sectors,
Means to support university and other skill development
exchanges.

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