KHALLIKOTE AUTONOMOUS COLLEGE,

BERHAMPUR, GANJAM

P.G. DEPARTMENT OF POLITICAL SCIENCE

Session 2020-21
HOME ASSIGNMEN T TOPIC ON
st
“INDIA-USA RELATIONS IN 21 CENTURY”
Submitted By
RITESH KUM AR P RAD HAN

Class P.G 2nd Year (4th Semester)

Class Roll No:- PG19-PS018
Examination Roll No: 011904PS021

Under The Guidance of

SRI B ARUN KUM AR B EHERA
P. G. Department of Political Science
 CERTIFICATE

This is to certify that the dissertation entitled “INDO-US

RELATIONS IN 21ST CENTURY” is a bonafied record for M.A
(Political Science) 2nd year and particularly for 4th Semester. It’s
an independent research work done by Ritesh Ku. Pradhan, roll
no- PG19-PS018, Examination roll no- 011904PS021 done
under the supervision of Barun Kumar Behera (HOD) and
submitted to PG Department of political science of Khallikote
Autonomous college for partial fulfilment of Master’s degree.

BARUN KUMAR BEHERA

(H.O.D of PG DEPARTMENT OF
POLITICAL SCIENCE)
KHALLIKOTE AUTONOMOUS COLLEGE;
BERHAMPUR, GANJAM, Odisha.

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 DECLARATION

I do hereby declare that the dissertation submitted by me to the

P.G Department of political science, Khallikote Autonomous
college, Berhampur, is of my own and is not submitted to any
other institution including institution or published at any time
before.

Ritesh Kumar Pradhan

PG 2nd Year, Political Science,
Roll no:-PG19-PS018
Exam roll no:-011904PS021

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 ACKNOWLEDGMENT

I express my deep gratitude to my teacher and mentor Barun

Kumar Behera (H.O.D), Political Science Department his proper
guidance helped me immensely while preparing this assignment
article.
I also want to convey my thanks to my parents, other teachers
and friends for their patience and co-operation for completion of
this article.

Ritesh Kumar Pradhan

PG 2nd Year, Political Science,
Roll no:-PG19-PS018
Exam roll no:-011904PS021

CONTENT

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1. INTRODUCTORY INTROSPECTION
2. HISTORICAL BACKGROUND
3. INDIA & USA LATEST DEVELOPMENTS….
4. INDO – US 5 PILLARS OF STRATEGIC CONVERGENCE…
5. DIPLOMATIC STRATEGY TO ENGAGE IN DEFENCE DIPLOMACY …
6. CONNECTIVITY DIPLOMACY WITH US UNDER BLUEDOT NETWORK
7. INDIAS STRATEGY FOR NUCLEAR DIPLOMACY
8. INDIA & NSG DIPLOMACY
9. INDIA & AG DIPLOMACY
10. INDIA & WASSENAAR ARRANGEMENT
11. INDO-US TRADE AND ECONOMIC RELATIONS
12. INTELLECTUAL PROPERTRY RIGHT ISSUES
13. ENERGY DIPLOMACY
14. KASHMIR AN AREA OF DIVVERGENNCE
15. US OBJECTION TO CAA & LAUTENBERG AMENDMENT STRATEGY
16. INTERNATIONAL RELIGIOUS FREEDOM REPORT ON INDIA 2020
17. WAY FORWARD AREAS OF INDO-US DIPLOMACY
18. REFERENCE

ABSTARACT

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 In this article we are going to discuss about two great
land of opportunities, freedom & aspirations. One is
India and another is USA. For USA India is at the front
and the centre of Americas engagement in the region,
because India is a free & open Indo-Pacific region with
potential to emerge as the most consequential partner of
the 21st century. We are going to discuss different aspects
of diplomacy between Indi-US relations in the 21st century
such as their president’s percept about India, India’s
interest in engagement. India-US relations have become
increasingly multi-faceted, covering cooperation in areas
such as trade, defence and security, education, pharmacy,
science and technology, civil nuclear energy, space
technology and applications, environment, and health.

INDIA-USA RALATIONS IN 21ST CENTURY

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 “Man by nature and necessity is a social animal.”
(A man who can live without other beings is either a god or a beast)
- ARISTOTLE
1. INTRODUCTORY INTROSPECTION
In this 21st century cosmos we live in an era of multi-alignment and in a state of flux,
where cooperation & co-existence of nations is the order of the day. It’s a leap of faith that
every nation is independent & sovereign but no nation or country can live in isolation. The
international arena coloured itself into anarchy in absence of a strong commanding authority
which can be seen in contemporary power and dominance procurement process. In
International organisations or in world political scenario. There’s preponderance of some
mighty developed countries (super power’s) try to dominate other under developed & Latin
American countries. Developed countries use third world countries as means to satisfy their
ends (which is to build an image of dominant global power).

We are two of the world’s largest democracies. We are nations forged from many
Traditions and faiths, proving year after year that diversity is our strength. From vastly Different
origins and experiences, we have come to the same conclusions: that freedom and democracy
are the strongest bases for both peace and prosperity, and that they are Universal aspirations,
constrained neither by culture nor levels of economic development. There have been times in
the past when our relationship drifted without a steady Course. As we now look towards the
future, we are convinced that it is time to chart a New and purposeful direction in our
relationship.

Globalisation is erasing boundaries and building networks between nations and Peoples,
economies and cultures. The world is increasingly coming together around the Democratic
ideals India and the United States have long championed and lived by. Together, we represent a
fifth of the world’s people, more than a quarter of the economy. We have built creative,
entrepreneurial societies. We are leaders in the information age. The currents of commerce and
culture that link our societies run Strong and deep. In many ways, the character of the 2l’t
century world will depend on the success of our co-operation for peace, prosperity, democracy
and freedom

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 2. HISTORICAL BACKGROUND
As India was a British colony, Indo-US independent Communication label was impossible.
F.D Roosevelt realised India could play an important role in World War 2, for him India could act as
a block to resist Japanese aggression in South Asian region and provide needed resistance for war
Roosevelt. To ensure that India participates in World War 2 nationalist leaders of India stuck to one
particular point that India would support war efforts and the British give them independence in
return.
For that matter Roosevelt took up the Indian issue to Churchill. The British did not
appreciate the USA broadening their affairs which resulted some tension in the US British alliance.
As far as US was concerned it was of the opinion that the allied powers are fighting for
independence and right to self-determination, they should also in turn liberate their colonies which
were fighting imperialism for the same reasons.
In fact, fundamental disagreement over India can be best elaborated if we look at how US
and British viewed the Atlantic charter which was pivotal policy statement issued during World War
2 on 14 August 1941 which defined Allied goals for post war world. The leaders of UK and USA
drafted the work and allies ratified it.
The Atlantic charter mentioned all participants participating allies in war needed to ensure
that once that war is over people belonging to the lost territories would have the RIGHT TO SELF-
DETERMINATION (RTSD).
Churchill’s view was that this Atlantic charter point of RTSD be held exclusively for Nazi areas
won in the war. In contrast for Roosevelt the Atlantic charter was a universal proposition and also
applied to territories under colonial rule. Thus, for the US India was a rightful claimant to RTSD.
The period of cold wars subsequently remained a low phase in INDO-USA engagement
because of India adopted nonalignment and US became the spreader of capitalism. As they became
ideologically opposite relation remain tense. Ties became tensed and US brought Cold War at the
door step of India by making Pakistan a member of CENTO and SEATO. This made India tilt towards
USSR which eventually made the US more suspicious of India.
The USSR throughout Cold War still tried to provide India with assistance at economic and
social level due to the fact that they found synchronization with India as India was a democracy
which since the end of Cold War became a “shared value” between the two. Also, such assistance
would allow USA to have presence in India and enable them to keep a check on China and prevent
India to gravitate completely towards USSR. This is the reason why US displayed willingness to
support India which arms when India made a request at the time of Sino-Indian conflict in 1962.The
US however threatened India in 1971 with nuclear retaliation in the India Pakistan war. This has
remained a scar on the bilateral ties till today with many in the establishment of India remaining
sceptical of the USA. After 1974 peaceful nuclear explosion US isolated India by creating the
NUCLEAR SUPPLIERS GROUP (NSG) all this proof that ties remained low in Cold War.USA has
already asserted that India and USA are “two book ends of stability” in the region and US favours
India to be positioned as a leading global power.

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 3.INDIA & USA LATEST DEVELOPMENTS

 Joe Biden defeated Donald Trump to become the 46th US President. Biden’s running mate
Kamala Devi Harris has become the first woman and first Indian- and African- American Vice
President of the country. Biden and Harris swore into office on 20th January 2021.
 There are several ways in which the US economy, its health, and the policy choices of its
government affect India
US Elections Impact on India

 Economic Relations: Under the Biden administration, India’s trade with the US could recover
from the dip since 2017-18.
 Trade Surplus: India has always had a trade surplus (exports exceeding imports) with the US.
 The trade surplus has widened from USD 5.2 billion in 2001-02 to USD 17.3 billion in 2019-20.
Trade surplus had peaked at USD 21.2 billion in 2017-18 and has moderated to some extent.
 In 2019-20, India exported goods worth USD 53 billion to the US – that’s roughly 17% of all
Indian exports that year and imported goods worth USD 35.7 billion in return – that’s roughly
7.5% of all Indian imports.
 Trade-in Services: India accounts for nearly 5% of the USA’s services imports from the World.
Know in detail about the Balance of Trade on the given link.
 Investment: The US is the fifth-biggest source for Foreign Direct Investment into India. Only
Mauritius, Singapore, Netherlands, and Japan have invested more FDI since 2000. Check out the
details on Foreign Direct Investment – FDI on the linked page.
 The US also accounts for one-third of all Foreign Portfolio Investments (that is, investment in
financial assets) into India.
 US’ Generalized System of Preference: India’s exclusion from the US’ Generalized System of
Preference (GSP) could come up for reconsideration under Biden. All relevant details on
Generalized System of Preference – GSP is available on the linked page.
 In 2019, President Donald Trump had terminated India’s designation as a beneficiary developing
nation under the GSP trade program after determining that it has not assured the US that it will
provide “equitable and reasonable access” to its markets.
 India was the largest beneficiary of the program in 2017 with USD 5.7 billion in imports to the
US given duty-free status.
 GSP is designed to promote economic development by allowing duty-free entry for thousands of
products from designated beneficiary countries.
 H1-B Visa Issue: How a US President looks at the H1-B visa issue, affects the prospects of
Indian youth far more than the youth of any other country.
 Under President Trump, who severely curtailed the visa regime, owing to his policy of “America
First”, India had suffered the most.
 H-1B visa is a non-immigrant visa that allows American companies to employ foreign workers in
specialty occupations that require theoretical or technical expertise.
 Other Issues: Other points of contention between India and the US – such as the tricky issue of
data localization or capping prices of medicines and medical devices – have a chance of getting
towards a resolution.
 Further, under the Trump administration, the US sanctions on Iran severely limited India’s
sourcing of cheap crude oil.
 In China, it is more likely that a Biden administration will help India against China, instead of
clubbing the two together.
 Paris Climate Accord: Biden has promised to re-join the Paris Climate Accord, and this may
help countries such as India in dealing with the massive challenges – both technical and financial
– on this front. Get details about the Paris Agreement on the linked page.

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 Civil Liberties and Democratic Rights in India:

 Although some US Congressmen and women had raised red flags on the human rights situation
following the revoking of J&K’s special status under Article 370 and passage of the Citizenship
(Amendment) Act alongside the proposed nationwide National Register of Citizens (NRC), the
Trump administration had not taken any actions beyond making some perfunctory statements.
Check out the links for details on the National Register of Citizens – NRC.
 According to the Biden campaign’s policy paper, Biden has been “disappointed by the measures
that the Government of India has taken with the implementation and aftermath of the National
Register of Citizens (NRC) in Assam and the passage of the Citizenship (Amendment) Act into
law”.
 On October 27th 2020, India and the United States signed the Basic Exchange and Cooperation
Agreement – BECA. It was signed during the third round of 2+2 dialogue.
 In wake of the COVID-19 pandemic, President Donald Trump on April 7th, 2020, spoke of
“retaliation” if India turned down his request to lift the hold on US orders of an antimalarial drug,
hydroxychloroquine which he has touted as a “game-changer” in the fight against the coronavirus
despite its untested efficacy.
 In February 2020, US President Donald Trump visited India. In his maiden visit to India, both
nations significantly ramp up bilateral relations mainly in strategic ties and defence.
 In September 2019, Modi visited Houston and he addressed a large Indian American contingent
in the Houston NRG stadium. Along with President Trump, he reaffirmed Indian American ties,
with an emphasis on increased military cooperation with the initiation of the Tiger Triumph
exercises.
 On 8 November 2017, the US announced a grant of nearly US$500,000 for organizations that can
come up with ideas and projects to promote religious freedom in India and Sri Lanka.
 On 3 August 2018, India became the third Asian nation to be granted Strategic Trade
Authorization-1 (STA-1) status by the United States. STA-1 enables the export of high-
technology products in civil space and defense from the US to India.

4.INDO – US 5 PILLARS OF STRATEGIC CONVERGENCE

INDIA-US have five pillars of strategic convergence –
i. Strategic & Defence issues
ii. Energy & climate change
iii. Science & Technology
iv. Health & innovation
v. Education & development
5.DIPLOMATIC STARATEGY ENGAGE IN DEFENCE DIPLOMACY
 The first ever step of defence diplomacy between India and the US was seen in 1962 when India
had a conflict with China/At that time Nehru, in a letter to John F Kennedy, had sought US
military help.
 The then Foreign Secretary of India, M J Desai, had conveyed categorically to the then the US
ambassador to India, John Kenneth Galbraith, that India would seek military aid from the US
provided that the US does not insist on alliance formation.
 When China came down the Himalayas in 1962, President Kennedy Went ambassador Harriman
and Carl Kaiser to see whether they could get Pakistan to withdraw its forces from the Indo-

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 Pakistan border, so that they could be sent to the Chinese border Prime Minister Nehru ji
supposed to have told Harriman and Kaysen that Pakistan would not oblige whereas, amusingly,
Finance Minister Morarji Desai told them that they should not worry because even if the
Chinese occupied India”, that would only be "To maybe a thousand years" and that eventually
*India would throw them out".
 The US agreed to provide military support to be airlifted to India However, the two sides
perceived this initial cooperation very differently.
 The US saw the Sino-Indian conflict as an exercise that would allow the US to explore a common
working ground with India for the Indians, it was limited assistance and much lesser than what
they expected, which also eventually was stopped in 1965 when another war with Pakistan
broke out.
 For India, the cooperation was insignificant in contrast to Indian cooperation with the USSR.
Since the end of the Cold War, both India and the US have steadily improved their security
cooperation and both sides have signed many security agreements over time.
 In 2020, The US blocked the attempt of Pakistan to place the name of an Indian engineer, Venu
Madhava Dongara, before the UNSC 1267 Sanctions Committee.
Different agreement related to Indo-US defence diplomacy
1. Kicklighter proposals-1991
2. Agreement minute on Defence Relations
3. General Security of Military Information Agreement-GSMIA- 2002
4. Bilateral Security Cooperation-2004
5. India- US Defence Agreement-2005
6. Defence Technology and Trade Initiative-2013
7. Strategic and Commercial Dialogue
8. India-US Defence Agreement-2015
9. Foundational Military Agreements 2016
10.Defence Partner tag to India
11.Logistics Exchange Memorandum 2016
12.Communications Compatibility and Security Agreement CISMOA
13.Agreement Number-13: Indo-US Strategic Trade Authorisation-1 (STA): From STA-2 to STA-1
14.Indo-US (SCD) was replaced by 2+2 Dialogue.
15.Indian Ocean Cooperation and Training Exercise 2019
16.Number-16: Indo-US Two plus Two Dialogues of 2019
17.industrial Security Annex-2020
18.Basic Exchange and Cooperation Agreement for Geo-spatial Cooperation-2020
AREAS OF FUTURE COOPERATION & WAY FORWARD AT THE DEFENCE LEVEL

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 There is one-way India and the US can deepen their defence cooperation, which can also help
address certain deep-rooted fears Indians have of the US. Today, the US military is no longer
requiring F-16 aircrafts anymore. The US Air Force will only require servicing of existing F-16s till
2040.
 Americans produce F-16 aircrafts. They are manufactured by an American firm called Lockheed
Martin. The Lockheed Martin F-16 aircrafts are highly needed by Indian Air Force. They are also
used by 25 other states, including Pakistan, India and the US can explore a new opportunity
here. As Lockheed Martin does not have much business left in US, it is planning to shift out its
entire F-16 production line to India. Tata Advanced Systems have shown an interest in
collaborating with Lockheed Martin. As of now, India is one of the biggest buyers of American
defence products.

6.INDIA'S DIPLOMATIC STRATEGY TO ENGAGE IN CONNECTIVITY DIPLOMACY WITH

THE US UNDER THE BLUE DOT NETWORK
 The US in 2020 proposed that India should join the Blue Dot Network (BDN). The network was
announced by the US in 2019 and is designed to certify infrastructure projects. It will provide
certification of projects being market-driven, financially sustainable and transparent.
 Even though, as of now the network is merely a vision statement, but the fact that Australia and
Japan have joined it, despite being largest trading partners of China, says something about the
network. The prime idea of the network is to mount a multilateral pressure on Chinese Belt and
Road Initiative (BRI).
7.INDIA'S DIPLOMATIC STRATEGY TO ENGAGE IN NUCLEAR DIPLOMACY WITH THE
US
 The nuclear deal signifies a quantum leap in the relations from suspicion during partnership in
the 21* century. One of the key structural determinants of the US-India Entente has been the
economic regeneration of India since the end of the Cold War. The US did not envisage any
comprehensive alternative to the goal of nuclear non-proliferation yet wanted to improve
relations with India.
 To tackle this challenge, the Bush administration, by giving India the nuclear deal, has
successfully incorporated India into the global nuclear order and has encouraged India to
emerge as a great power in the future. Thus, shifts in the global balance of power have
encouraged the US and India to reorient their foreign policies and the nuclear deal is the most
important symbol of this new partnership. Let us try to analyse that how did the nuclear deal
eventually happen. The entire deal can be broken down into 25 steps.
 There are four Multilateral Export Control Regimes. They are Australia Group (AG), Wassenaar
Arrangement (WA), Missile Technology Control Regime (MTCR) and Nuclear Suppliers Group
(NSG). All these four are informal regimes and they are not treaty based. They are a club of like-
minded states. Let us look at each one of them one by one. India is negotiating with
Participating Governments to join the NSG (despite opposition by China, as explained later
ahead). The keenness of India to join these Multilateral Export Control Regimes can be seen
from India and NPT. India feels that as NPT will not accept India today as a “Nuclear Have”, it

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 feels that the only logical way India can legitimise its nuclear status is to make NPT irrelevant.
To achieve this objective, India has adopted a two-point policy.
a) First, it favours to join the Multilateral Export Control Regimes like NSG and MTCR (as both
require accession to NPT as one of the membership “criteria”). India feels that by joining
NSG and MTCR, it can make NPT redundant.
b) Second, India, after its nuclear test in 1998 has focused on civilian aspect of nuclear
technology and its trade rather than a nuclear weapon. This is the reason why 11 th May
(1998 was the day when India carried out its nuclear tests) is celebrated as a National
Technology Day today.
8 INDIA & DIPLOMACY WITH NUCLEAR SUPPLIERS GROUP (NSG)
 NSG was formed in response to India’s PNE (1974) in 1975 and was initially called London Club.
Its aim was to manage export controls and nuclear proliferation issues which were outside the
framework of NPT.
 Till 1991, NSG remained a dormant grouping. At the end of the Cold War, with the
disintegration of the USSR, the threat of nuclear war was replaced with the threat of nuclear
proliferation, which re-energised the NSG, to tackle those matters that were left out of the
scope of NPT.
 The decisions in the NSG are taken by consensus, making memberships difficult for new
member states. At the end of the Cold War, Belarus, Ukraine and Kazakhstan possessed
weapons of Soviet era.
 Both USSR, through proactive diplomacy, and the US decided to de-arm them and made the
three states join the NPT as NNWS. Since 1991, with the advent of Gulf War-1, and situation of
proliferation in Iran and North Korea; there was a growing belief that NPT is not sufficient to
tackle nuclear proliferation. The NSG made attempts to rectify such shortcomings of NPT.
 In order to reposition NSG as a serious grouping to tackle nuclear proliferation and not merely
position as a club; NSG in 1991 stated that it will not use member states as a term, which Will
be replaced with Participating Governments-PG. Subsequently, in 2001, a new “procedural
arrangement” was adopted that talked about admitting a new PG to NSG. The procedure has
five-point criteria.
1. State should have the ability to supply or produce items mentioned in the control list of NSG.
2. State should adhere to the guidelines of NSG.
3. State should legally enforce the guidelines of NSG.
4. State should support global efforts to seek non-proliferation of Weapons of Mass Destruction.
State should adhere and comply with one or more obligations of the NPT.
5. It was clarified that the above points were only considerations” to be used for membership and
were not mandatory as a criterion. As part of an attempt to operationalise the India-US Nuclear
deal, in 2008, India was given NSG specific waiver. In 2010, India expressed an interest to
become a member of the NSG. It was primarily out of concerns arising out of India’s Civilian
Liability for Nuclear Damages Ac In 2016, when India made a formal attempt to join the NSG,
after resolving the concerns in the liability law, its membership was blocked by China

9.INDIA AND DIPLOMACY WITH AUSTRALIA GROUP (AG)

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 In 1980, during Iran Iraq war, Iraq legitimately and legally procured chemicals and began to
develop Chemical Weapons. This emerged as a new threat to international security.
 In 1985, in a meeting in Brussels, a list was developed which maintains chemicals, which were to
be subjected to export control. Doing so, as believed, would prevent the proliferation of
Chemical Weapons. The annual meetings to evolve the list happened in the Australian Mission
in Paris. Once the list was developed by 15 Western states, a group called AG was born.
 Over a period of time, biological agents were added to expand the list and more technical and
other equipment’s were added to expand the scope to incorporate Chemical and Biological
Weapons.
 In 2018, India joined the AG as a 43 rd Member State. Joining AG proves that India has safeguards
and export controls for chemical and biological weapons, which met the benchmark standards
of the international community.
 As India’s chemical industry has emerged as a global exporter of chemicals; its trade has
increased in dual use chemicals. Joining the AG will harmonise India’s export controls as per
international standards.

10. INDIA AND DIPLOMACY WITH WASSENAAR ARRANGEMENT In 1950

 The US had established Coordinated Committee for Multilateral Export Control (COCOM). It was
an attempt to block the export of strategic materials and technologies to Soviet Union and its
satellite states.
 The end of the Cold War, Coordinated Committee for Multilateral Export Control (COCOM) was
replaced with WA.
 In WA, the member states have to harmonise their national policies. They are harmonised to
control transfers of conventional munitions list and dual use goods and technical list.
 WA covers an area of strategic materials and technologies where no international treaty exists.
WA is very important in the globalised technologies (of encryption and surveillance etc.) are
developed by private players, for commercial use. This makes it tough for the governments to
regulate dual use.
 WA aims to foster transparent practices with respect to sales and transfers of arms, materials
and technology, which aid build up of nuclear capabilities.
 It has mechanisms to prevent falling of such technologies into the hands of non-state actors, In
WA, member states share and exchange information related to transfer of technology or denial
of technology (conventional and nuclear) to states not a part of WA.
 In 2017, India joined WA. It can now access dual use technology that is proscribed for non-
members. India can also sell nuclear reactors that are indigenously built without any
Restrictions from states.
 INDIA AND DIPLOMACY WITH MISSILE TECHNOLOGY CONTROL REGIME (MTCR) agreement has
to prevent the proliferation of unmanned delivery vehicles for nuclear weapons, an informal
been established called MTCR in 1987 by the US, United Kingdom, Canada, France, Germany,
Italy and Japan.

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 India joined the MTCR in June 2016. In 2015, India’s membership to join the MTCR was blocked
by Italy (due to Italy’s objection to the investigation of Italian Marine fishermen killing issue).
 China is not a member of the MTCR. It has been blocking Indian membership to NSG, as
informally China wants a quid pro quo. It wants India to support Chinese candidature to MTCR
and in return China would support Indian candidature to NSG.
 The members of MTCR object to Chinese inclusion to MTCR as China has a dubious record of
proliferating missiles to Pakistan (in violation with certain stated aims of MTCR).

11. India-US Relations – Trade and Economic Relations

 Trade and economic partnership between the US and India have been a key component of the
bilateral relationship. A new US Financial and Economic Partnership to strengthen bilateral
engagement on macroeconomic, financial, and investment-related issues was launched in New
Delhi in April 2010 by the finance minister Mr. Pranab Mukherjee and US Treasury Secretary
Timothy Geithner. The Second Meeting of India- US Financial and Economic Partnership was
held in Washington D.C in June 2011. The India-US Trade Policy Forum (TPF) was established in
July 2005 to discuss issues related to trade. The last and seventh meeting of the TPF took place
in Washington DC from September 21- 22, 2010.
 An Agreement on Framework for Cooperation on Trade and Investment was signed during the
visit of Minister for Commerce & Industry, Mr. Anand Sharma to the USA in March 2010. As part
of the Economic Dialogue, a separate Commercial Dialogue has been set up to cover:

(a) Trade Defence Measures

(b) Small and Medium Enterprises
(c) Capacity building on Intellectual Property Rights (IPRs).
 For greater involvement of the private sector in a discussion on issues involving trade and
investment the bilateral India-US CEO’s Forum was reconstituted in 2009.
 The fourth round of the reconstituted CEOs’ Forum to facilitate a structured dialogue between
the industry and the government was held on 22 September 2011 at Washington DC. Separately
a Private Sector Advisory Group (PSAG) has also been created consisting of prominent Indian
and international trade experts to provide strategic recommendations and insights to the US-
India Trade Policy Forum.
 In 2017, the US exported $25.7 billion worth of goods to India, and imported $48.6 billion worth
of Indian goods Major items imported from India include information technology services,
textiles, machinery, gems and diamonds, chemicals, iron and steel products, coffee, tea, and
other edible food products. Major American items imported by India include aircraft, fertilisers,
computer hardware, scrap metal, and medical equipment

12.INDIA AND THE US INTELLECTUAL PROPERTY RIGHTS ISSUES

 As per the 2003 BIT of India, the treaty offered investors fair and equitable treatment based
on reasonability and due process.

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  In 2009, India and Us started negotiating a treaty to protect foreign investment that flows
from one state to the other. The negotiations were slow because both sides updated their
model BIT template in 2015, replacing the 2003 template. A BIT protects the investments of
the investors by allowing them extra rights against unlawful actions of host states and
thereby boosts investors’ confidence, leading to more FDI.. The 2015 treaty has replaced it
with customary international law.
 Now the investment by an investor shall not be subjected to any measures that violate
existing customary international law.
 The investors get a choice to arbitrate disputes either under International Centre for
Settlement of Investment Disputes (ICSID) arbitration rules or the additional facility rules of
ICSID or the United Nations Commission on International Trade Law (UNCITRAL) arbitration
rules.
 The new BIT does not mention the need for the “Most Favoured Nation” status tag for each
other.
 The two nations have differing perceptions on IPR despite both being compliant to the
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement of
WTO. The matter was aggravated in 2014 when the Office of the US Trade Representative
put India under priority watch is under the “Special 301” Report.
 Since 2012, patent disputes have emerged as a sticky issue because India has refused the US
firms the right to patent, due to firms resorting to ever greening. Ever greening means that
the company makes a mirror amendment to its already patented product and seeks to
expand patent life further after a minor modification. India has invoked Section 3(d) of the
Indian Patent Act often.

13. INDIAN DIPLOMATIC STRATEGY FOR ENERGY DIPLOMACY WITH US

 In 2018, India signed the US-India Strategies Energy Partnership and India has started
importing oil and gas from the US. The Strategic Energy Partnership has four pillars.
 They include oil and gas; power and energy efficiency; clean and renewable energy; and
sustainable growth. Though it may not be the cheapest option, but is definitely one where
India stands to be a gainer.
 India favours a deal between Tellurian Inc. and Petronet LNG in the future. In 2020, Exxon
and Chart Industries have collaborated with Indian Oil Corporation to provide India with
LNG. This is important because India is presently focusing on building gas pipeline
infrastructure and that process will take time. So, in the meantime, in its push towards
renewable energy, India is planning to import gas through containers as an alternative.
 In 2020, the US International Development Finance Corporation will setup an office in India
and start with a financing facility of 600 million dollars for renewable energy projects in
India.

14. KASHMIR AS AN AREA OF DIVERGENCE BETWEEN INDIA AND THE US

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 Upon the insistence of the US, India took the matter to the UN in 1947. India opined that the
UN would urge Pakistan to halt aggression and withdraw forces. In the meantime, India sent an
extensive combat operation in Kashmir. By the time Indian troops entered Kashmir, Pakistan
had occupied two-thirds of Kashmir. India continued to advocate a diplomatic solution through
the UN.
 The British certainly did not favour escalation and they tilted to support Pakistan out of its own
interest. The British decided to seek US assistance. The US itself was not keen on meddling into
Asian affairs and was initially reluctant.
 However, to respect its alliance with the British, the US began to develop a position similar to
the British position on the matter. They also advocated a plebiscite and a political solution.
 The US even warned India that if India did not cooperate, it could have consequences for the
Indo-US relations. India, in contrast, insisted that it did not need goodwill of any nation and it
could anyway develop proximity to the Soviets.
 India resented the Anglo-American axis and perceived the US policy on Kashmir as an extension
of the colonial legacy. Thus, Kashmir has been one of the core dimensions of the American
policy since Cold War.
 For Trump, Pakistan is very crucial because he needs their support to ensure that Taliban does
not attack American interests in future when they become a credible player in Afghanistan

15.AMERICAN OBJECTION TO INDIAN CITIZENSHIP AMENDMENT ACT AND

LAUTENBERG AMENDMENT STRATEGY OF INDIA
 The Indian Citizenship Amendment Act has been criticised by the US House Foreign Affairs
Committee (HFAC). A quasi-official body called US Commission on International Religious
Freedom (USCIRF), dominated by Christian fundamentalists advocated that there is a need to
sanction principal leadership of India for the CAA.
 As a counter to CAA, India has raised Lautenberg Amendment of the US (which was
spearheaded by US Senator Frank Lautenberg in 1989), which allows certain persecuted
religious minorities in the erstwhile Soviet Union to get the US citizenship.
 The amendment was extended to include “persecuted minorities” from Iran in 2004, through
the Spectres Amendment.
 For India, the Lautenberg Amendments of the US are a strong response for Indian CAA because
the amendments recognise that some refugees of specific religions from specific countries could
be identified as “historically persecuted groups” and, hence, given refugee status without
requiring them to show that they individually had been persecuted.
 The template of the Indian CAA is quite similar

16. INTERNATIONAL RELIGIOUS FREEDOM REPORT ON INDIA 2020

 The USCIRF in its 2020 Report has added India as a Country of Particular Concem (CPC), a tag
that India got the second time after 2002 Gujarat riots under the able leadership of Narendra
Modi.

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 Even though the government might have diplomatically rejected the report by branding the
report as “prejudiced, inaccurate and full of misleading observations”, but the report does
present an opportunity to India to introspect on the status of religious freedom being violated
with a culture of impunity and state patronage.

17. WAY FORWARD FOR INDO-US DIPLOMACY

As analysed above, there are lot of irritants that happen to exist as the relations are not between
equals, as India Is a post-colonial state while the US is a mature hegemonic power; thus, a situation
where even small things can Have large consequences.
 There is absence of mutual trust and high respect deficiency the establishments of the two
sides are often disappointed for non-achievements of short-term objectives.
 The two sides don’t have adequate understanding of the potential of the bilateral
economic ties.
 Unfortunately, the two sides till now have pot developed meaningful and pragmatic ideas
that can be applied realistically to enhance their strategic partnership.
 Americans till today suffer from the “chained elephant” symptom. Despite India making
tremendous economic progress, the Americans still feel that India is a land of snake
charmers and illiterate people.
 India feels that at the international level, the US is a protector of the rich and the US feels
that India is a manipulating nation that is a representative of the poor.
 India feels that the US has not been able to realise that India has a mind of its own. India
says that the US is not able to understand that as India was colonised by the British because
of trade practices, it is this why India is reluctant to be too open on issue of trade, like the
US.
 In the present times, the India and the US have very divergent views on Russia, China and
Iran. For India, Iran is a valuable partner not just for oil but also access to Afghanistan and
the larger Eurasia. The US views Iran as an evil and wants India to reduce its oil dependence
from Iran. This is ironic as historically American West Asia policy has been also dependent
upon energy from the region.
 In the era of Trump, the entire American society is divided on Russia. Half of the society in
the US feels that Russia needs to be constrained through sanctions and isolation to prevent
a revival of Cold War (Trump falls here), while the rest half believes the need to cooperate
with Russia for stalling China.
 India is caught in this crossfire, despite having a deep relationship with Russia, which India
is not willing to forgo, despite its growing proximity to the US. Thus, India has to negotiate
carve-outs, sanction waivers and exemptions.
 Even though there is consensus in India and the US that China is the “Banquo’s ghost” and
is a threat in Asia owing to its attempt to position itself as an Asian hegemon; there is no
understanding on how India can share burden and responsibilities to check China.
 In fact, India has adopted a layered strategy where it is okay to engage in Indo-Pacific and
Quad (designed as per Americans to check China, but perceived as just other “multilateral

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 arrangements” by India). Only if these deep-seated perceptions change, can the two sides
enable to evolve a deep geopolitical and strategic relationship, based on “shared values”.
Grassroot-level interactions between the people of the two nations provide further
vitality and strength to this bilateral relationship. There have been regular contacts at
political and official levels with a wide-ranging dialogue on bilateral, regional and global
issues have taken place and we have to carry it forward with slogan of
“UNITED WE STAND, DIVIDED WE FALL”.

REFERENCE:-

 Ghosh, Peu, (2020): International Realations; PHI publication (p.p-673)

 Khanna V.N, (2013): International Relations; VIKAS PUBLISHING HOUSEPVT LTD
(p.p-454 to 477)
 Singh, Pavneet,(2020): International Relations; McGrawhill publication(p.p-390)
 https://www.state.gov/u-s-relations-with-india/
 https://www.mea.gov.in/
 https://www.clearias.com/india-us-bilateral-relations/
 https://byjus.com/free-ias-prep/india-united-states-relations/
 https://indianexpress.com/article/opinion/columns/s
 https://www.iasexpress.net/india-united-states-relations/

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