70^th BPSC Mains

Approach Introduce with India-US relations and their strategic importance. Highlight key areas of cooperation, supported by recent data and developments. Discuss challenges and trade imbalances affecting bilateral ties. Conclude suitably.

Introduction

India-US relations have evolved into a comprehensive global strategic partnership, spanning defense, trade, technology, and energy security. Recent high-level diplomatic engagements in Washington DC have reinforced bilateral cooperation, demonstrating resilience despite geopolitical shifts. However, trade imbalances and regulatory challenges remain key concerns, necessitating mutual efforts to strengthen economic and strategic ties.

Body

Key Areas of Cooperation Between India and the US:

• Defense and Security Cooperation:
  • India and the US have transitioned from a buyer-seller model to co-production and technology sharing, enhancing defense collaboration.
  • India’s designation as a Major Defense Partner (MDP) and inclusion in STA-1 facilitates access to high-tech defense technology, including potential F-35 fighter jets.
  • Several agreements foster AI-driven defense capabilities, strengthening India’s military modernization.
  • Joint military exercises like Tiger Triumph and procurement of defence equipment enhance interoperability.
• Trade and Investment Relations:
  • Bilateral trade is projected to reach $500 billion by 2030, addressing market access issues, tariffs, and supply chain resilience.
  • India has reduced tariffs on bourbon, motorcycles, and ICT products, while the US has granted access to Indian mangoes, pomegranates, and pharmaceuticals.
• Energy and Climate Cooperation:
  • The US has become a top supplier of crude oil, LNG, and petroleum products to India.
  • The US-India Energy Security Partnership (2025) focuses on hydrocarbon trade, renewables, and nuclear energy.
• Technology and Innovation Partnership:
  • The U.S.-India TRUST Initiative (2025) enhances collaboration in AI, semiconductors, quantum computing, and biotech.
  • The Recovery and Processing Initiative boosts cooperation in rare earths and critical minerals, vital for EVs and defense applications.
• Space and Indo-Pacific Cooperation:
  • The NISAR satellite (2024) and NASA-ISRO human spaceflight collaboration signify deeper scientific and strategic cooperation.
  • India’s inclusion in the Artemis Accords (2023) underscores bilateral space exploration efforts.
  • India’s full membership in the US-led Combined Maritime Forces (CMF) (2023) enhances regional security and maritime surveillance.

Key Challenges and Trade Imbalances in India-US Relations:

• Trade Disputes and Tariff Barriers:
  • The US goods trade deficit with India increased by 5.4% to $45.7 billion in 2024, raising concerns in Washington.
  • Disagreements persist over high Indian tariffs on US agricultural and industrial products, while India criticizes US non-tariff barriers in pharmaceuticals and IT services.
• Defense Technology and Export Control Restrictions:
  • Despite growing defense ties, the US restricts access to fifth-generation fighter jets and advanced undersea systems.
  • The Reciprocal Defense Procurement (RDP) agreement (2025) aims to resolve regulatory misalignments and improve co-development projects.
• Strategic Autonomy vs. US Expectations:
  • While both nations oppose China’s aggression in the Indo-Pacific, India maintains a non-aligned policy, engaging with BRICS and SCO alongside Quad partnerships.
• Visa and Immigration Issues:
  • The H-1B visa program remains a contentious issue due to delays, quotas, and work permit restrictions.
  • 3.3 lakh Indian students in the US (2024) contribute significantly to the American economy, necessitating smoother visa processes.
• Multilateral Disagreements:
  • Despite US support for India’s permanent UNSC membership, divergences exist over Russia policy, WTO trade rules, and digital governance.
  • India’s neutral stance on Russia’s Ukraine invasion has led to US pressure on diplomatic alignments.

Measures to Strengthen Strategic and Trade Ties:

• Addressing Trade Barriers:
  • Finalizing the Bilateral Trade Agreement (BTA) (2025) to resolve tariff and regulatory challenges in agriculture, digital trade, and industrial goods.
  • Strengthening supply chain integration in semiconductors, rare earths, and pharmaceuticals to enhance economic cooperation.
  • Aligning intellectual property rights (IPR) regulations with global standards to attract more US investments.
• Enhancing Defense and Technology Collaboration:
  • Expanding the India-US Defense Industrial Cooperation Roadmap for joint production of AI, drone, and undersea warfare technologies.
  • Accelerating defense co-development initiatives through the Reciprocal Defense Procurement pact.
• Deepening Energy and Climate Cooperation:
  • Increasing investments in green hydrogen, carbon capture, and small modular reactors (SMRs) for clean energy transition.
  • Strengthening long-term energy supply agreements for LNG and crude oil trade stability.
• Boosting People-to-People and Academic Exchanges:
  • Negotiating higher H-1B visa caps and faster Green Card processing for skilled Indian professionals.
  • Expanding Indo-US dual-degree programs, faculty exchanges, and AI-driven research partnerships.
• Enhancing Digital and Data Governance Cooperation:
  • Harmonizing data protection laws to facilitate cross-border tech collaborations without compromising India’s data sovereignty.
  • Encouraging US tech giants to invest in AI, fintech, and cybersecurity R&D hubs in India.

Conclusion

India-US ties have strengthened across strategic, technological, and economic domains, contributing to global stability. Despite trade imbalances and policy challenges, deeper cooperation in defense, technology, and energy can enhance bilateral relations, ensuring a stable and prosperous future in a multipolar world.