Prime Minister Narendra Modi with President Joe Biden in Bali, Indonesia.
| Photo Credit: REUTERS
The next six months are going to be crucial for India-U.S. ties. In March, the U.S. finally announced its next Ambassador to India, Eric Garcetti, after a gap of two years. Prime Minister Narendra Modi is likely to head to the U.S. in June, and U.S. President Joe Biden is expected to visit India for the G20 summit later this year. There will also be greater engagement between the two countries on forums such as the G20, Quad, and I2U2.
Divergence and convergence
The presence of Mr. Garcetti, who is known to be a close confidante of Mr. Biden, in Delhi is a sign of things to come. While his appointment signifies the potential for greater partnership, there are also differences in opinion to be overcome in the U.S.-India relationship. The U.S. may want India to change its stance on the Ukraine crisis, while India may seek to persuade the U.S. to have a stronger position against China. While India would seek greater partnership with the U.S., it would also be reluctant to sever its stable relations with Russia. Moscow has just released its foreign policy strategy in which it has identified China and India as its main allies. India is also the president of the Shanghai Cooperation Organization, a forum that includes China and Russia, until September. On the other hand, the North Atlantic Treaty Organization’s overtures to India will be watched as it seeks greater participation from Delhi.
There are also strong areas of convergence between India and the U.S.. The India-U.S. Initiative on Critical and Emerging Technology, launched in 2022, is expected to expand strategic technology partnership and defence industrial cooperation between the governments, businesses, and academic institutions of the two countries.
The Indo-Pacific partnership is aimed at promoting security and economic growth, increase trade and investment, and enhance connectivity in the region. The partnership is based on the shared vision of a free, open, and inclusive Indo-Pacific region that is respectful of the sovereignty and territorial integrity of all countries. The partnership involves a range of initiatives, including joint military exercises, information-sharing on security issues, and collaboration on economic and infrastructure development projects. It also involves cooperation in areas such as counter-terrorism, cybersecurity, and maritime security. One of the key objectives of the Indo-Pacific partnership is to counter the growing influence of China in the region. The U.S. and India share concerns about China’s aggressive actions in the South China Sea, its expanding military presence in the region, and its efforts to establish economic dominance through its Belt and Road Initiative.
In recent years, there has been growing interest in diversifying supply chains away from China due to geopolitical tensions, trade disputes, and concerns about over-reliance on a single country. India’s growing consumer market makes it an attractive destination for U.S. businesses looking to expand their customer base. India has a relatively low-cost labour force and an abundance of skilled workers in sectors such as Information Technology, engineering, and manufacturing. The government has also implemented policies aimed at attracting foreign investment and promoting economic growth. However, there are also challenges to realigning U.S. supply chains to India. Infrastructure, logistics, and regulatory systems in India are not as well developed as those in China. India also has a complex legal and bureaucratic system. To address these challenges, the U.S. and Indian governments have taken steps to promote closer economic ties and facilitate investment. For example, the U.S.-India Strategic Energy Partnership, launched in 2020, aims to enhance cooperation in areas such as energy security and access, and climate change.
Ups and downs
The India-U.S. relationship has seen ups and downs over time. The nuclear deal, liberalisation of markets, and the outsourcing of Indian techies for U.S. companies are a few key moments of the relationship. Indian Americans are among the most successful immigrants in the U.S. India needs the knowledge, skill and investment of the diaspora to regain its global position.
Previously, the U.S.-aided Green Revolution had transformed India from a shortage economy to one with surplus food. The U.S. has also played an important role in making India an IT superpower. Today, a large number of persons of Indian origin are contributing to Silicon Valley companies.
The U.S. and India are also partners in combating climate change. This involves a wide range of initiatives, including promoting renewable energy, joint research and development projects, and investment in renewable energy infrastructure. The two countries are also aligned on the importance of space technology.
In the past, there was a trust deficit between India and the U.S. It is hoped that trust between the two nations will be enhanced in the coming months. Indians feel that the U.S. has not always lent support to it and has instead pivoted to supporting Pakistan. Moreover, the American pull-out from Afghanistan does not inspire confidence in the U.S. as a trusted partner. The U.S., on the other hand, has been flagging issues related to terrorism, human rights and democracy in India.
Building on their strategic partnership, the two countries can slowly become stronger together. This is the time to take the relationship forward constructively and make it reach its potential as well as look for positive areas of collaboration.
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