India - U.S.A Relations

Posted 24 Mar 2025

Updated 28 Mar 2025

5 min read

Why in the News?

The Indian Prime Minister paid an Official Working Visit to the USA.

Key Outcome of the Visit

Area/Sphere	Development
Defense & Security	Proposed Ten-year Framework for the U.S.-India Major Defense Partnership: Announced plans to sign Partnership to advance defense ties further. Autonomous Systems Industry Alliance (ASIA): To scale industry partnerships and production in the Indo-Pacific. Other: Announced new co-production arrangements of Javelin (Anti-Tank Guided Missiles) and Stryker (Infantry Combat Vehicles) in India.
Technology and Innovation	U.S.-India TRUST (Transforming the Relationship Utilizing Strategic Technology) Initiative: It will catalyze government-to-government, academia and private sector collaboration to promote the application of critical and emerging technologies in areas like defense, etc. INDUS Innovation: It will advance U.S.-India industry and academic partnerships and foster investments in space, energy, and other emerging technologies. It is modeled after the INDUS-X initiative, which facilitates partnerships between U.S. and India to enhance military capabilities. Strategic Mineral Recovery Initiative: A new U.S.-India program to recover and process critical minerals (including lithium, cobalt, and rare earths) from heavy industries like aluminum, coal mining and oil and gas.
Others	U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century: Promote a results-driven agenda to demonstrate the level of trust for a mutually beneficial partnership. Indian Ocean Strategic Venture: A new bilateral, whole-of-government forum to advance coordinated investments in economic connectivity and commerce. Launched Mission 500, aiming to more than double total bilateral trade to $500 billion by 2030.

A map of the united states is given along with neigbouring countries.

Significance of a Robust India-US Relationship

Advancing Economic Opportunities: USA is the top-most merchandise export destination for India.
- India has joined three pillars of USA led Indo-Pacific Economic Framework [IPEF].
Strengthening Global Strategic Influence: E.g. Quad, a diplomatic partnership between Australia, India, Japan, and the United States committed to supporting an open, stable and prosperous Indo-Pacific.
- Such initiatives will help in countering the influence of China.
Defense Modernization and Capacity Development: India has signed foundational defense agreements with US which include a General Security Of Military Information Agreement (GSOMIA), Logistics Exchange Memorandum of Agreement (LEMOA), Communications Compatibility and Security Agreement (COMCASA) and Basic Exchange and Cooperation Agreement (BECA).
- US recognized India as a Major Defense Partner with Strategic Trade Authorization-1 (STA‑1) authorization.
Expanding Frontiers in Emerging Technologies: Launched US-India Initiative on Critical & Emerging Technologies (iCET, 2023).
Expanding Space Outreach: E.g. NISAR (NASA-ISRO Synthetic Aperture Radar) mission.
- Also, India has joined the US led Artemis Accord, provides a common set of principles to enhance the governance of the civil exploration and use of outer space.
Ensuring Energy Security: U.S.-designed nuclear reactors will be built in India to fully realize the U.S.-India 123 Civil Nuclear Agreement, 2008.
- In recent years, the U.S. has emerged as one of the largest suppliers of Liquefied natural gas (LNG) to India.
Countering Terrorism: U.S. recently approved the extradition to India of Tahawwur Rana, accused in the 26/11 attacks.
Support at Multilateral Forums: E.g. US support for India's permanent UN Security Council membership and Nuclear Suppliers Group.
- Supports India's bid to join the International Energy Agency as a full member.
Fighting Climate Change & Renewable Energy: US joined the India led International Solar Alliance.
- Also, launched US-India Renewable Energy Technology Action Platform (RETAP).
- Both are part of Global Biofuels Alliance (GBA)

The below image gives factors responsible for strenthening of relationship such as growing influence of China, India as fastest growing major economy, de-hyphenation policy of US, etc.

Issues Straining India-US Partnership in recent times

Trade & Economic Challenges
- Imposition of reciprocal tariffs along with other protectionist measure will make Indian products less competitive.
- India remained on the Priority Watch List of the U.S. 2024 "Special 301" report, an annual review of the global state of intellectual property rights (IPR) protection and enforcement.
- US revoked India's GSP (Generalized System of Preferences) in 2019, impacting duty-free Indian exports.
Geopolitical Divergences: India follows strategic autonomy and independent foreign policy.
- E.g. India is part of QUAD but avoids turning it into a military alliance and India's stance on Russia-Ukraine War
Visa & Immigration Challenges: Recently, US is tightening visa regulations (E.g. H-1B Visa), which will affect Indian IT professionals and others.
- Also, illegal Indian Immigrants have been deported.
Concerns over Human & Religious Rights: Concerns raised by the United States Commission on International Religious Freedom (USCIRF) against the Citizenship (Amendment) Act (CAA), 2019 have been seen as internal interference in India.
Imposition of Sanctions: US has raised concerns over the acquisition of advanced weaponry, such as the S-400 air defense system from Russia by India, citing potential implications under the Countering America's Adversaries through Sanctions Act (CAATSA).

Ways to further Strengthen India-US Partnership

Finalizing Bilateral Trade Agreement (BTA): A BTA would enhance market access, reduce tariffs, boost investment, strengthen supply chains, etc.
- Also, it will help in resolving issue related with reciprocal tariff, IPR, etc.
Finalisation of defence framework: Both countries can work for early finalization of new 10-year defence framework that will run from 2025 to 2035
- Reciprocal Defense Procurement (RDP) agreement can also be finalised.
Easing H-1B Visa Restrictions: The US can streamline visa processes for Indian IT professionals, researchers, etc.
Waiver under CAATSA: Influence of Indian-American can be used to get long-term exemptions for India under CAATSA to strengthen defense ties and counter regional threats.
Managing Concerns over Human & Religious Rights: The US should avoid interference in India's internal affairs, recognizing the diversity of its democratic system.
Enhance cooperation in emerging technologies and artificial intelligence (AI): It is essential as data regulation, information sharing, and privacy protection is crucial to national security.
- E.g. U.S.-India Roadmap on Accelerating AI Infrastructure will be prepared under U.S.-India TRUST Initiative.