India and the United States have a multifaceted and internationally significant relationship. These relations are deeply intertwined in the areas of strategic, economic, cultural and technological cooperation.
- Strategic Partnership
The two countries are important partners of the 21st century.
India and the United States signed a civil nuclear agreement in 2008, which gave a new dimension to the strategic cooperation between the two countries.
The US recognizes India as a major defense partner and the two countries are working on the purchase of defense equipment, military exercises and security cooperation.
- Economic Relations
The US is India’s largest trading partner.
Trade and investment between the two countries is constantly growing, including in areas such as technology, energy and infrastructure.
The US is a big market for Indian IT professionals and startups, while India offers an emerging economy for American companies.
- Technological and Science Cooperation
India and the US are collaborating in areas such as space, cybersecurity, and artificial intelligence.
There are many successful examples of cooperation between NASA and ISRO, such as the NISAR satellite project.
- Cultural and educational ties
A large number of Indian diaspora lives in the US, which acts as a cultural bridge between the two countries.
Indian students go in large numbers to study in American universities.
Yoga, Bollywood and Indian food have made their place in American society.
- Challenges and issues
There are occasional disputes over visa and migration policy.
India and the US have some policy differences on issues such as Russia, China and climate change.
- Cooperation in the Indo-Pacific region
The two countries are working together to balance China’s growing influence in the Indo-Pacific region.
India and the US partnership in groups such as the QUAD is important.
Strategic Partnership
The strategic partnership between India and the United States is of immense importance from the point of view of global politics and security. This partnership extends to several key areas:
- Defense cooperation
The US has recognized India as a “Major Defense Partner”, giving it access to cutting-edge defense technologies.
Shared military exercises
The two countries regularly conduct military exercises, such as the Malabar naval exercise, which also involves Japan and Australia.
Joint army and air force exercises, such as Yudh Abhyas and Cope India, strengthen cooperation in the field of security and strategy.
Procurement of defense equipment
India has purchased several critical defense systems from the US, such as the C-17 Globemaster “aircraft”, Apache helicopters, and Predator drones.
- Nuclear cooperation
The Indo-US civil nuclear agreement in 2008 gave a new direction to the strategic relationship.
This agreement gave India the benefit of nuclear energy and technical cooperation, as well as strengthened India’s position on the international stage.
- Cooperation in the Indo-Pacific region
The two countries are working together to maintain stability in the Indo-Pacific region.
QUAD
This group (India, the US, Japan, and Australia) focuses on strategic and economic cooperation to balance China’s growing influence in the region.
The US considers India an important power in the region.
- Cooperation against terrorism
The two countries share intelligence and are engaged in joint efforts to combat terrorism.
US support against Pakistan-based terrorist organizations has strengthened India’s position internationally.
- Cyber and space cooperation
Cyber security
The two countries are cooperating against cyber threats and data security.
Space sector
The two countries are promoting strategic and scientific partnerships through cooperation between NASA and ISRO.
- Partnership in defense production
India and the US have tried to increase cooperation in defense production under the “Make in India” initiative.
Several projects of joint production and technology transfer are underway.
Economic relations
- Trade Relations
Economic relations between India and the United States are a major pillar of bilateral cooperation. These relations have progressed rapidly over the last few decades and today play a vital role for the economies of both countries.
Bilateral Trade
The bilateral trade between India and the US reached nearly $190 billion in 2023. It is one of India’s largest trading partners.
Exports and Imports
India exports IT services, pharmaceuticals, clothing, gems, and jewellery to the US.
India imports crude oil, aircraft, machinery, and high-tech equipment from the US.
Services Sector
Indian IT companies, such as TCS, Infosys, and Wipro, have a strong presence in the US market.
The US is a big market for Indian technical and professional services.
- Investment Relations The US is one of the largest foreign investors in India.
FDI (Foreign Direct Investment):
US companies are investing in the Indian market in sectors such as technology, e-commerce, energy, and infrastructure.
Indian Investments
Indian companies, such as Reliance, Mahindra, and Tata Group, are investing in various sectors in the US.
- Technological and Innovation Cooperation
Startups
India’s startups receive huge financial support from US venture capital firms.
Technological Cooperation
The two countries are working together in the areas of artificial intelligence (AI), fintech, and cybersecurity.
Digital India and the US
Under the Digital India program, US companies are contributing to India’s digital infrastructure.
- Energy and Environment
Energy Trade
The US exports crude oil, gas, and energy-related technologies to India.
Renewable Energy
The two countries are cooperating in the field of solar energy, wind energy, and climate change.
Green Energy Partnership:
The India-US Green Energy Partnership, launched in 2021, further strengthened energy cooperation.
- Education and Employment
A large number of Indian students pursue higher education in the US, strengthening economic and cultural ties between the two countries.
Indian IT professionals account for a large share of employment in US companies.
- Challenges
Trade Imbalance:
There have been differences between India and the US over the trade balance.
Tariffs and Policies:
US tariffs and trade policies have sometimes been challenging for India.
Visa Policy:
Tighter rules on H1-B visas may impact Indian professionals.
Economic Relations
The economic relations between India and the United States are steadily progressing with depth and breadth. The growing level of trade and investment between the two countries has further strengthened their participation in the global economy.
- Bilateral Trade
The US is India’s largest trading partner.
In 2023, the total value of bilateral trade between the two countries exceeded $191 billion.
Major Trade Items:
Exports from India to the US: Pharmaceuticals, IT services, jewelry, textiles, and automobiles.
Exports from the US to India: Crude oil, defense equipment, aircraft, and agricultural products.
- Investment and Entrepreneurship
Investment by US companies in India:
US companies like Google, Microsoft, Apple, and Amazon have invested heavily in India’s IT, e-commerce, and manufacturing sectors.
Investment by Indian companies in the US:
Indian companies like Tata, Infosys, Wipro, and Mahindra are investing in the US along with creating jobs.
In 2023, the level of foreign direct investment (FDI) between the two countries was over $60 billion.
- Cooperation in IT and Services Sector
India’s IT companies play a major role in the US’s tech and services industry.
H1-B Visa:
Indian professionals are the largest beneficiary group of the US’s H1-B visa.
This visa allows US companies to employ Indian IT experts and engineers.
- Cooperation in Energy Sector
LNG and Oil Imports:
India has become a major importer of liquefied natural gas (LNG) and crude oil from the US.
Clean Energy Cooperation:
The two countries are working on the development of renewable energy, such as solar and wind power.
The US-India Clean Energy Finance (USICEF) program, launched in 2016, encourages investment in renewable energy.
- Challenges in Trade Relations
Tariffs and Trade Barriers:
India and the US sometimes have differences over import duties and trade policies.
Digital Tax
India has imposed taxes on some US digital companies, over which the US has expressed concern.
- New Initiatives and Agreements
US-India Trade Policy Forum (TPF)
This forum works to resolve trade issues and promote cooperation.
I2U2 Group
This group of India, the US, Israel, and the UAE is working on economic projects, such as climate change and infrastructure.
Technical and scientific cooperation
Technology and science cooperation between India and the United States has strengthened the relationship between the two countries. This cooperation extends deep into areas such as science, space, health, cybersecurity, and artificial intelligence.
- Cooperation in Space Sector
Cooperation between NASA and ISRO
The two agencies are working together on several projects.
Major project: NISAR Satellite Mission which will monitor changes in the Earth’s climate and environment.
Moon and Mars Missions
The US has appreciated the success of India’s Chandrayaan and Mangalyaan missions and looks forward to further cooperation.
- Health and Biotechnology Cooperation
Cooperation during the COVID-19 pandemic
The two countries worked together in vaccine research and distribution.
US support in making India a global hub for vaccine manufacturing.
Scientific Research
India-US health initiatives, such as the Vaccine Action Program and the Bio-Design Initiative encourage cooperation in the field of health and biotechnology between the two countries.
- Artificial Intelligence (AI) and Digital Technology
India and the US are working together in the areas of artificial intelligence, machine learning, and data analytics.
The US-India Initiative on Critical and Emerging Technologies (iCET)
This initiative, launched in 2023, is promoting cooperation in semiconductor production, quantum computing, and AI.
- Cooperation in Cybersecurity
The two countries are working together to combat cyber threats.
The US-India Cyber Dialogue, established in 2016, has deepened mutual understanding in data security and combating cybercrimes.
Indian IT companies are working with US firms to develop cybersecurity solutions.
- Climate Tech and Energy Cooperation
The US-India Climate and Clean Energy Agenda
This initiative focuses on developing new technologies related to renewable energy and climate change.
The US is providing assistance to India in the development of solar panels and energy storage technologies.
- Cooperation in Education and Research
The Fulbright-Nehru Fellowship
Encourages exchange between Indian and US students and researchers.
Indian scientists are working closely with US institutions in joint research projects.
- Semiconductors and High-Tech Manufacturing
India and the US signed agreements in 2023 to strengthen partnerships in semiconductor production.
The US is providing technical assistance to make India a hub of semiconductor production.
Cultural and academic ties
Cultural and educational ties between India and the United States play a vital role in bringing the people of the two countries closer. These ties have deepened over the years through historical, social, and educational exchanges.
- Indian Diaspora
About 4 million Indian diaspora lives in the US, which is an integral part of the economic, cultural, and social fabric of the US.
The Indian-American community has made its strong presence felt in the fields of politics, science, arts, and business.
Prominent examples are “Kamala Harris” (Vice-President of the US), Sundar Pichai (CEO of Google).
The diaspora has popularized yoga, Bollywood, Indian food, and festivals (such as Diwali) in American society.
- Educational Ties
Presence of Indian Students
India is the second largest source country for students studying in the US.
In 2023, about 2 lakh Indian students were studying in the US for higher education.
US-India Educational Foundation (USIEF)
This organization encourages educational exchange through programs such as the Fulbright-Nehru Fellowships.
Research and Research Collaboration
US universities are working with Indian institutions on joint research projects, such as on climate change, public health, and emerging technologies.
- Cultural Exchange
Influence of Bollywood
Bollywood films and music have made deep inroads into American society.
Many Indian dance and music events and festivals are held in the US.
Yoga and meditation have found a permanent place in the American lifestyle.
Every year on June 21, International Yoga Day is celebrated on a large scale in the US.
Celebration of Indian Festivals
Indian festivals such as Diwali, Holi, and Eid have become part of the American cultural landscape.
- Language and Literature
Indian languages, such as Hindi, Tamil, Telugu, and Punjabi, have spread rapidly in the US.
Indian writers, such as Jhumpa Lahiri, Salman Rushdie, and Arundhati Roy, have made their mark in the American literary world.
- Technical and Vocational Education
Indian students are leading in IT and Engineering studies in the US.
Many Indian professionals hold key positions in American universities and companies.
- Presence of Indian Institutions
Many Indian cultural centers have been established in the US, such as India House and various Hindu temples.
These institutions work to promote Indian culture, history, and traditions.
Challenges and issues
India and the US have strong and multifaceted relations, but there are also some challenges and issues that create differences in this relationship. These issues range from trade, geopolitics, and domestic policies to global outlook.
- Trade differences
Import duties and tariffs
The US has accused India of imposing high import duties, especially on agricultural products, medical devices, and electronics.
On the other hand, India considers US trade policies as unbalanced.
Digital taxes
India has imposed digital service taxes on US tech companies (Google, Facebook, Amazon), which the US considers unfair.
- Visa policy and immigration
H1-B visa
The H1-B visa is a key issue for IT professionals in India.
Changes in visa rules and strict policies on immigrant workers affect Indian tech personnel and companies.
Visa uncertainty in the US remains a concern for students and professionals from India.
- India’s relations with Russia
The US has disagreed with India’s defence and energy cooperation with Russia.
India’s neutral position during the Ukraine war has raised concerns among the US and other Western countries.
- Difference in approach towards China
The US advocates an aggressive strategy towards China, while India tries to take a balanced approach.
Although the two countries are cooperating to balance China’s growing influence in the Indo-Pacific region, differences in strategies remain.
- Human rights and domestic policies
The US has raised concerns over issues related to religious freedom and minority rights in India.
India considers it an internal matter and rejects external interference.
- Energy and environmental issues
India has advocated developed countries, especially the US, to take historical responsibility in carbon emissions and provide financial and technical assistance to developing countries.
The US is pressing India to rapidly adopt clean energy and net-zero targets.
- Strategic Autonomy
India wants to maintain its independent foreign policy, while the US wants India to align more closely with Western countries in its policy decisions.
In particular, balancing India’s autonomy and US expectations in defence agreements and global security matters is a complex challenge.
- Differences in approach on terrorism
The US’s policies on Pakistan have sometimes caused discontent in India.
Although the US has supported India on the issue of terrorism in recent years, concerns remain about relations with Pakistan.
Cooperation in the Indo-Pacific Region
India and US cooperation in the Indo-Pacific region is playing an important role with the aim of ensuring peace, stability, and prosperity in the region. This cooperation covers various aspects of economic, strategic, and security.
- Indo-Pacific Strategy
Free and Open Indo-Pacific (FOIP)
The US and India want to see this region as a free, independent, and inclusive region.
This strategy is important to balance the growing military and economic influence of China.
QUAD
This group of India, US, Japan, and Australia works together to enhance maritime security, disaster management, and regional cooperation.
It is an influential platform to counter China’s aggressive policies.
- Security and Naval Cooperation
Joint Military Exercises
Malabar Exercise: This major naval exercise between India, US, Japan, and Australia promotes maritime security.
Military Partnership
The US has provided advanced defense technology and equipment to India.
Defence cooperation has been strengthened by the India-US Defence Logistics Agreement (LEMOA) and Communications Security Agreement (COMCASA).
Maritime Security
The two countries are working together to ensure the security of sea routes and freedom of navigation in the Indian Ocean and the Pacific Ocean.
- Economic and Trade Cooperation
Indo-Pacific Economic Framework (IPEF)
This initiative has been taken to promote trade, digital economy, and infrastructure in the region.
Blue Dot Network
India and the US have cooperated to promote high-quality infrastructure projects under this initiative.
Supply Chain Resilience
India and the US are cooperating to reduce dependence on China and strengthen the regional supply chain.
- Countering Chinese Aggression
India and the US have jointly formulated a strategy to balance China’s military expansion and economic dominance in the South China Sea.
Sovereignty and Territorial Integrity
Both countries support the sovereignty and territorial integrity of smaller countries.
- Cooperation in technology and innovation
India and the US are focusing on digital connectivity, artificial intelligence, and cyber security in the Indo-Pacific region.
5G and semiconductor production
Cooperation is taking place to increase technological development and production capacity.
- Climate change and disaster management
India and the US are working together to tackle climate change in the Indo-Pacific region.
The navies of the two countries conduct joint operations for disaster management and humanitarian assistance.
Conclusion
India-US relations are very important not only for the two countries but also for international stability and development. The cooperation between the two countries is deepening over time.
The strategic partnership between India and the US is not limited to bilateral relations but it is also important for global stability and security. The continuous expansion of these relations shows that both countries share the same goals and values.
The economic relations between India and the US are beneficial for the economies of both countries. These relations are not only limited to trade and investment but are also contributing to innovation, technological development and job creation. These relations are likely to become stronger in the future.
The progress in the economic relations between India and the US strengthens the economy of both countries and their role in the global market. The depth and diversity of these relations is likely to increase further in the coming years.
Technological and science cooperation between India and the US plays an important role in the development strategy of both countries. Partnership in these areas not only promotes technological development but also helps in solving global challenges.
Cultural and educational ties between India and the US not only enhance mutual understanding between the two countries but also strengthen people-to-people ties. These ties are an important step towards peace, cooperation, and prosperity at the global level.
Differences in India-US relations are natural as both countries prioritize their respective national interests. However, resolving these challenges is beneficial for both countries and efforts are being made to resolve these issues through constant dialogue and diplomacy.
India and US cooperation in the Indo-Pacific region is important to ensure global stability and balance. It not only promotes security and trade but also strengthens a lasting partnership based on common values and objectives.
The bilateral relations between India and the US have become strong and multifaceted over time. Both countries share common values such as democracy, freedom, and human rights, which further strengthen the foundation of their relationship.
Whether it is economic partnership, cooperation in technology and science, or strategic cooperation in the Indo-Pacific region, India and the US have taken several steps to enhance engagement with each other.
However, there are also challenges and differences, such as trade policies, visa issues, and differences in global outlook. But efforts are constantly being made to resolve these differences through dialogue and diplomacy.
The cooperation between the two countries is not limited to the bilateral level; it also plays an important role in promoting global peace, security, and prosperity. In the coming years, the relationship between India and the US is likely to become stronger, providing a new direction in the global scenario.
India and the US relations are based on the foundation of “vision, trust, and cooperation”. The development of these relations will be beneficial not only for the two countries but for the entire world.