1

DR. RAM MANOHAR LOHIYA NATIONAL LAW

UNIVERSITY

POLITICAL SCIENCE

PROJECT ON: -

INDIA’S RELATION WITH U.S.

SUBMITTED TO: SUBMITTED BY

Dr. Monika Srivastav Nivedita Singh

Assistant Professor IIIrd Semester

(Political science) Roll No.97

Dr.Ram Manohar Lohia Section-B

National Law University

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ACKNOWLEDGEMENT

“Words can never convey what deeds have done.”

Writing a project on any topic is never a single man’s job. I am overwhelmed in all humbleness
and gratefulness to acknowledge my depth to all those who have helped me to put these ideas,
well above the level of simplicity and into something concrete.

I am very thankful to my Prof. DR. MONICA SRIVASTAV for her valuable help. She was
always there to show me the right track when I needed her help. With the help of her valuable
suggestions, guidance and encouragement, I was able to complete this project. I would also like
to thank my friends, who often helped and gave me support at critical junctures during the
making to this project.

I hope you will appreciate the hard work that I have put in this project work.

- Nivedita Singh
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TABBLE OF CONTENTS

 Acknowledgement

 Introduction

 History of INDO-U.S. relation

 Post-independence

 Post-cold war

 Landmark moments

 Military relation

 Economic relation

 Conclusion

 Bibliography
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INTRODUCTION
India–United States relations (or Indo-American relations) refers to the international
relations that exist between the Republic of India and the United States of America. Prominent
leaders of India's freedom movement had friendly relations with the United States of America
which continued well after independence from Great Britain in 1947. In 1954, United States of
America made Pakistan a Central Treaty Organization (CENTO) treaty-ally. India cultivated
strategic and military relations with the Soviet Union to counter US-Pakistan ties. In 1961, India
became a founding member of the Non-Aligned Movement to avoid involvement in the Cold
War power-play between the USA and USSR. The Nixon administration's support for Pakistan
during the Indo-Pakistani War of 1971 affected relations till the dissolution of the Soviet
Union in 1991. In the 1990s, Indian foreign policy adapted to the unipolar world and developed
closer ties with the United States. In the 21st century, Indian foreign policy has sought to
leverage India's strategic autonomy in order to safeguard sovereign rights and promote national
interests within a multi-polar world. Under Presidents Bush and Obama, the USA has
demonstrated accommodation to India's core national interests and acknowledged outstanding
concerns. A unique feature of this relation is that U.S. is the world's oldest democracy, while
India is the world's largest democracy.

Increase in bilateral trade & investment, cooperation on global security matters, inclusion of
India in decision-making on matters of global governance (United Nations Security Council),
upgraded representation in trade & investment forums (World Bank, IMF, APEC), admission
into multilateral export control regimes (NSG, MTCR, Wassenaar Arrangement, Australia
Group) and joint-manufacturing through technology sharing arrangements have become key
milestones and a measure of speed and advancement on the path to closer US-India relations. In
2016, India and United States signed Logistics Exchange Memorandum of Agreement, a bilateral
deal on military logistics exchange including defense technology collaboration, expanding
military-to-military exchanges.
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HISTORY

Relations between India and the United States have been on an up-and-down trajectory since
Independence in 1947. While the seeds of distrust sown during the Cold War era and India's
testing of nuclear weapons have seen bilateral ties plunge to new lows, the recent Indo-US civil
nuclear deal saw relations surge to new heights.

Post-Independence-

The two countries mostly shared cold ties until the end of the Cold War. The US was seen tilting
more towards Pakistan and India, on the other hand, proclaimed to remain non-aligned. With the
US and the USSR being two superpowers, India led the third block of NAM (Non-Aligned
Movement) countries. However, the thorny relationship was not because of India joining the
NAM, but due to its closeness to the Soviet Union despite being non-aligned there were many
events that ensured the ties never took off for several years after India gained Independence.
India had rejected American mediation in resolving the Kashmir dispute with Pakistan that
started immediately after Independence. Further, India refused to follow American diktat not to
recognize the 'Communist China'. This despite the fact that the US assisted India with loans and
free food in the immediate period after Independence, to cope with an economy exploited for
decades by the British Raj. Dwight D Eisenhower became the first US President to visit India, in
1959, to take bilateral ties forward. He, among other things, assured India that the US would
stand by the South Asian nation against Chinese Communist aggression. Part of the US strategy
to protect India against China was to counter the rise of the Dragon as a third superpower. The
US saw in India a strategic partner during the regime of John F Kennedy. He famously said,
"Chinese Communists have been moving ahead the last 10 years. India has been making some
progress, but if India does not succeed with her 450 million people, if she can't make freedom
work, then people around the world are going to determine, particularly in the underdeveloped
world, that the only way they can develop their resources is through the Communist system.
“The US stood by India during the 1962 India-China war, which the South Asian nation
eventually lost. The US dubbed China's action as "blatant Chinese Communist aggression against
India" and helped the country with arms and ammunition, and civilian supplies. According to
one account, the Kennedy administration even mulled using nuclear weapons against China in
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the event of another war. However, the assassination of President Kennedy in 1963 changed the
trajectory of US outlook towards India. Under President Richard Nixon's period, the ties reversed
and hit a new low when the US backed Pakistan during the 1971 war. The Nixon administration
had been helping India's foe by aiding it militarily and economically, and during the 1971 war
indirectly threatened India by deploying aircraft carrier USS Enterprise in the Bay of Bengal.
While Nixon's ties with Prime Minister Indira Gandhi were nothing to talk about, India's decision
to test a nuclear weapon at Pokhran in 1974 further worsened relations. Also, India significantly
shifted from its stance of non-alignment and inked a Treaty of Friendship and Cooperation with
the USSR, irritating the US government.

Ties between the two nations improved under the stewardship of President Jimmy Carter and
Prime Minister Morarji Desai, whose government was anti-Soviet Union. Carter even made a
state visit to India. However, the former later banned export of nuclear material to India due to
the latter's non-proliferation record. Relations improved further when Indira Gandhi came back
to power in 1980. The Soviet Union had invaded and occupied Afghanistan, and this tilted India
towards the United States. Under PM Indira Gandhi and President Ronald Reagan, India and the
US increased cooperation in the field of defense technology and military equipment. India placed
orders for F-5 aircraft, super computers etc., and the US, in 1984, agreed to share technology to
help India build naval frigates and an indigenous light combat aircraft. Much of the technology
transfer never made it to the press, it is said. However, the same year witnessed the assassination
of Indira Gandhi and the Bhopal toxic gas leak that killed thousands. US-based Union Carbide's
pesticide plant in Bhopal was involved and India's effort to seek extradition of the firm's chief
executive proved futile. This hurt the bilateral ties to an extent.

Post-Cold War

Under the prime minister ship of PV Narasimha Rao, India unleashed sweeping economic
reforms with Finance Minister Manmohan Singh in driver's seat. The measures, in the years to
come, transformed the Indian economy while opening it to globalization benefits. The reforms
also helped strengthen the economic cooperation with the US and the rest of the world. Till 1998,
both the countries made mutual efforts to improve bilateral relationship. However, in May, 1998,
the decision of Prime Minister Atal Bihari Vajpayee's government to conduct nuclear tests at
Pokhran saw the ties with the US return to a new low. Pakistan responded with its own nuke tests
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in the same month. And, amid fears of a regional nuclear arms race, the US and other western
countries, including Japan, slapped wide-ranging sanctions against India. President Bill Clinton
even recalled the US ambassador to India. The sanctions, mostly economic, however failed to
hurt India in the wake of a surging domestic economy. In less than two years of the N-tests, the
sanctions were lifted and President Clinton made a visit to India in March, 2000. The visit saw
many agreements being signed, including on the establishment of an Indo-US Science &
Technology Forum. In the 1999 Kargil war, the US supported India's response and pressured
Pakistan to withdraw its troops from the Indian Territory across the Line of Control. Post
September 11, 2001 attacks in the US and December 13 terror strike on the Indian Parliament in
the same year, the two countries decided to collaborate closely in the global war against terror.
Though, America's greater reliance on Pakistan to counter terrorist forces in neighboring
Afghanistan continued to remain a sticking point. On other fronts, India and the US inked an
Open Skies Agreement in April 2005 to boost trade, tourism and business. India also placed an
order of 68 US Boeing aircraft for Air India at a cost of US $8 billion. The personal rapport
shared by Prime Minister Manmohan Singh and President George W Bush ensured the ties
remained on an upward trajectory. In 2005, the two countries inked the New Framework for the
US-India Defense Relationship identifying priorities for cooperation in maritime security,
humanitarian assistance and counter-terrorism. The agreement also gave a fillip to joint military
exercises between the armed forces of the two countries.

Landmark Moment

The landmark moment came on July 18, 2005 when India and the US signed the Civil Nuclear
Cooperation Initiative - a deal which lifted the US moratorium on nuclear trade with India and
ended the nuclear apartheid against the rising South Asian giant. As part of the landmark deal,
India agreed to separate its civil and military nuclear facilities, while allowing IAEA inspection
of the power-generation facilities. India is the only country in the world which is not part of the
NPT-CTBT regime but is allowed to participate in nuclear trade. It is another matter though that
India's nuclear liability bill has held up progress on bilateral cooperation in the field. Meanwhile,
President Bush visited India in March 2006 to hold further talks on the civil nuclear deal and also
give a push to defense and economic ties. The improved relationship between the two countries
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was highlighted once again when US agencies cooperated very closely with their Indian
counterparts in the aftermath of 26/11 Mumbai terror attacks.

The ties, however, witnessed a dip after Barack Obama came to power in the United States in
November, 2009. Even though Obama hosted PM Manmohan Singh for a state dinner as his first
international guest, the ties have failed to get the much-needed boost under his regime unlike
President Bush's tenure. The two countries, however, have launched the India-US Economic and
Financial Partnership and the India-US Strategic Dialogue under Obama's watch with the
President describing the relationship as “a defining partnership in the twenty-first century”.
Former Secretary of State Hillary Clinton appreciated India as “an indispensable partner”. And a
year later, when President Obama visited India, he supported India's bid for a seat on the UN
Security Council and signed trade deals worth US $15 billion. But, his administration's move to
curb US H1B visas and outsourcing of jobs to the developing world, particularly India, did not
go down well with the IT industry and the government here. The ties also sustained a hit in the
aftermath of Indian diplomat Devyani Khobragade's arrest on maid exploitation charges. Though
a favorable resolution of the row helped put the dark chapter behind, another roadblock emerged
in the form of US spying scandal, but the same has had little impact on bilateral relations. Prime
Minister Narendra Modi is at the helm of affairs now and he is looking to push forward bilateral
ties during his visit to the United States later this month. A successful trip is expected to undo the
damage done by a visa ban on him as chief minister of Gujarat, over his alleged role in the 2002
post-Godhra riots. PM Modi and President Obama would look to strengthen bilateral ties,
enhance cooperation and agree on technology transfer as India seeks to become a developed
nation in the 21st century.

MILITARY RELATION

U.S. and Indian Army soldiers during the opening ceremony of Yudh Abhyas 2015Sailors
assigned to the guided-missile destroyer USS Halsey (DDG 97) stand in ranks as the Indian navy
destroyer Satpura (F-48) pulls alongside Halsey during a Malabar 2012 exercise .U.S. Soldiers
with the 3rd Brigade, 2nd Infantry Division and Indian Army soldiers with the 6th Battalion of
the Kumaon Regiment, fire each other’s weapons during Yudh Abhyas 2015 at Joint Base
Lewis-McChord. USAF F-15C Eagles (middle of V formation) from Elmendorf AFB, Alaska,
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fly with Indian air force SU-30K Flankers (rear) and Mirage 2000 aircraft over the Indian
landscape during Cope India 04, the first bilateral fighter exercise between the two air forces in
more than 40 years. A U.S. Army lady officer and an Indian Army JCO bow and greet each other
in the traditional Indian way of Namaste, 2013.US-India military relations derive from a
common belief in freedom, democracy, and the rule of law, and seek to advance shared security
interests.[according to whom?] These interests include maintaining security and stability,
defeating violent religious extremism and terrorism, preventing the spread of weapons of mass
destruction and associated materials, data, and technologies, and protecting the free flow of
commerce. Sgt. Balkrishna Dave, an India-born U.S. Army paratrooper explains weapons range
safety procedures to Indian Army soldiers before they fire American machine guns. Yudh
Abhyas. An Indian Army officer is greeted by a U.S. Army officer at Fort Bragg, U.S., 2013
Harsh V. Pant, professor of International relations at King's College London, highlighted the
importance of India to US strategic planning by saying: "India is key to the US’ ability to create
a stable balance of power in the larger Indo-Pacific and at a time of resource constraints, it needs
partners like India to shore up its sagging credibility in the region in face of Chinese onslaught."
Robert Boggs, Professor of South Asia Studies at the Near East South Asia Center for Strategic
Studies, opines that the US "overestimates both India’s desire to improve the relationship and the
benefits doing so would bring". Neelam Deo, director of foreign policy at Gateway House,
underscored the importance that India attaches safeguarding its national interests by saying:
"India is a big country, with its own strategic objectives and imperatives and it will act on
opportunities where interests converge, as it has done in the past." Recognizing India as a key to
its strategic interests, the United States has sought to strengthen its relationship with India. The
two countries are the world's largest democracies, and both are committed to political freedom
protected by representative government. The US and India have a common interest in the free
flow of commerce and resources, including through the vital sea lanes of the Indian Ocean. In
recent years, India has conducted large joint military exercises with the US in the Indian Ocean.
There have been some differences, however, including US concerns over the nuclear weapons
programs and the pace of economic reforms in India. In the past, these concerns may have
dominated US thinking, but today the US views India as a growing world power with which it
shares common strategic interests. A strong partnership between the two countries will continue
to address differences and shape a dynamic and collaborative future. In a meeting between
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President Bush and Prime Minister Vajpayee in November 2001, the two leaders expressed a
strong interest in transforming the US-India bilateral relationship. High-level meetings and
concrete cooperation between the two countries increased during 2002 and 2003. In January
2004, the US and India launched the "Next Steps in Strategic Partnership" (NSSP), which was
both a milestone in the transformation of the bilateral relationship and a blueprint for its further
progress. In July 2005, Bush hosted Prime Minister Manmohan Singh in Washington, D.C. The
two leaders announced the successful completion of the NSSP, as well as other agreements
which further enhanced cooperation in the areas of civil nuclear, civil space, and high-
technology commerce. Other initiatives announced included a US-India economic dialogue, the
fight Against HIV/AIDS, disaster relief, technology cooperation, an agriculture knowledge
initiative, a trade policy forum, energy dialogue, CEO Forum, and an initiative to assist each
other in furthering democracy and freedom. President Bush made a reciprocal visit to India in
March 2006, during which the progress of these initiatives were reviewed, and new initiatives
were launched. In June 2015, US defense Secretary Ashton Carter visited India and became the
first American defense secretary to visit an Indian military command. In December of the same
year, Manohar Parrikar became the first Indian defense minister to visit the US Pacific
Command. In March 2016, India has rejected a proposal by the USA to join naval patrols in the
South-China Sea alongside Japan and Australia. Defense Minister Manohar Parrikar said: "India
has never taken part in any joint patrol; we only do joint exercises. The question of joint patrol
does not arise.”

Nuclear cooperation in late September 2001, President Bush lifted sanctions imposed under the
terms of the 1994 Nuclear Proliferation Prevention Act following India's nuclear tests in May
1998. A succession of non-proliferation dialogues bridged many of the gaps in understanding
between the countries. In December 2006, the US Congress passed the historic Henry J. Hyde
US-India Peaceful Atomic Cooperation Act, which allows direct civilian nuclear commerce with
India for the first time in 30 years. US policy had been opposed to nuclear cooperation with India
in prior years because India had developed nuclear weapons against international conventions,
and had never signed the Nuclear Non-Proliferation Treaty (NNPT). The legislation clears the
way for India to buy US nuclear reactors and fuel for civilian use. The India–United States Civil
Nuclear Agreement also referred to as the "123 Agreement", signed on 10 October 2008 is a
bilateral agreement for peaceful nuclear cooperation which governs civil nuclear trade between
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American and Indian firms to participate in each other's civil nuclear energy sector. For the
agreement to be operational, nuclear vendors and operators must comply with India’s
2010 Nuclear Liability Act which stipulates that nuclear suppliers, contractors and operators
must bear financial responsibility in case of an accident. Prominent industrial accidents (1984
Bhopal chemical-gas disaster and the 2011 Fukushima nuclear disaster) has led to greater
scrutiny by civil society into corporate responsibility and financial liability obligations of
vendors and operators of critical infrastructure. In 2010, the Indian Parliament voted the Civil
Liability for Nuclear Damage Act to address concerns and provide civil liability for nuclear
damage and prompt compensation to the victims of a nuclear incident.

ECONOMIC RELATION
The United States is one of India's largest direct investors. From 1991 to 2004, the stock of FDI
inflow has increased from USD $11.3 million to $344.4 million, and totaling $4.13 billion. This
is a compound rate increase of 57.5 percent annually. Indian direct investments abroad began in
1992, and Indian corporations and registered partnership firms are now allowed to invest in
businesses up to 100 percent of their net worth. India's largest outgoing investments are in the
manufacturing sector, which accounts for 54.8 percent of the country's foreign investments. The
second largest are in non-financial services (software development), accounting for 35.4 percent
of investments.

Trade relations
U.S. President George W. Bush and Indian Prime Minister Manmohan Singh during a meeting
with Indian and American business leaders in New Delhi. The US is India's second largest
trading partner, and India is its partner. In 2015, the US exported $21.5 billion worth of goods to
India, and imported $44.8 billion worth of Indian goods. Major items imported from India
include information technology, services, textile, machinery, gems and diamonds, chemicals,
iron and steel products, coffee, tea and other edible food products. Major American items
imported by India include aircraft, fertilizers, computer hardware, scrap metal, and medical
equipment. The United States is also India's largest investment partner, with a direct investment
of $9 billion (accounting for 9 percent of total foreign investment). Americans have made
notable foreign investments in the Asian country's power generation, telecommunications, ports,
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roads, petroleum exploration and processing, and mining industries. American imports from
India amounted to $46.6 billion or 2% of its overall imports, and 15.3% of India's overall exports
in 2015. American exports to India amounted to $20.5 billion or 5.2% of India's overall imports in
2015. In July 2005, President Bush and Prime Minister Manmohan Singh created a new program
called the Trade Policy Forum. It is run by a representative from each nation. The United States
Trade Representative was Rob Portman, and the Indian Commerce Secretary then-Minister of
Commerce Kamal Nath. The goal of the programme is to increase bilateral trade and investment
flow. There are five main sub-divisions of the Trade Policy Forum, including:

 The Agricultural Trade group has three main objectives: agreeing on terms that will allow
India to export mangoes to the United States, permitting India's Agricultural and Process
Food Products Export Development Authority (APEDA) to certify Indian products to the
standards of the U.S. Department of Agriculture, and executing regulation procedures for
approving edible wax on fruit.
 The goals of the Tariff and Non-Tariff Barriers group include agreeing that insecticides
manufactured by US companies can be sold throughout India. India had also agreed to cut
special regulations on trading carbonated drinks, many medicinal drugs, and lowering
regulations on many imports that are not of an agricultural nature. Both nations have agreed
to discuss improved facets of Indian regulation in the trade of jewelry, computer
parts, motorcycles, fertilizer, and those tariffs that affect American exporting of boric acid.
The group has also discussed matters such as those wishing to break into the accounting
market, Indian companies gaining licenses for the telecommunications industry, and setting
policies regarding Indian media and broadcasting markets. Other foci include the exchange
of valuable information on recognizing different professional services, discussing the
movement and positioning of people in developing industries, continuation of talks on
financial services markets, limitation of equities, insurance, retail, joint investment in
agricultural processing and transportation industries, and small business initiatives.
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CONCLUSION

In the past, Indo-US relations were overshadowed by Cold War politics. The Indo-Soviet
friendship and the US-Pak alliance were the two major irritants. Though ‘aid relations’ prevailed
during 1950s and 1960s, New Delhi and Washington saw each other on opposite sides of the
fence during this period. However, Presidents Kennedy and Lyndon Johnson were in favor of
maintaining good relations with India. Recently declassified papers show that Kennedy was
more greatly interested in India than Pakistan. The Sino-Indian dispute in 1962 brought about
enhanced bilateral cooperation between the two countries. But the 1965 Indo-Pak War undid
everything; Washington lost interest in the region. Though President Carter showed some
interest, the Afghan war witnessed US political support tilting again towards Islamabad. Reagan
literally wrote off India. Later, in the mid-1980s the US strategy was to wean India away from
the Soviet Union. Dramatic turn occurred in the 1990s—the Cold War was terminated with the
disintegration of the Soviet Union and US-Pak relations nosedived, because of the latter’s
clandestine nuclear programme.Presently Indo-US relations are improving leading to several
official visits. Though there is the burden of history, the US is no longer looked upon as
“interventionist” by India. One reason could be the presence of non-Congress governments in
New Delhi. India is viewed as the largest democracy and emerging economic power, despite its
numerous domestic problems. It is also seen as a reliable and potential partner in Asia if US
relations sour with China. The Bush regime has “rediscovered” India. The Indian Americans’
role is significant in boosting India’s image in the US from a ‘land of the poor’ to the ‘country of
brains’. NRIs are especially admired for their contributions to information technology. They are
better organized than before through the India Caucus, which now includes 130 members of the
House of Representatives.

There is much apprehension in India over the new US-Pak “alliance” after September 11 and a
possible reverting to the Cold War years. Despite the return of cordiality towards Pakistan, the
US needs India. This is evident from the commencement of high level military-to-military
contacts, no objection to the PHALCON radar system being procured from Israel, and optimism
on obtaining the GE-404 engines and P3C Orion maritime surveillance aircraft. Scores of mutual
visits across the board is proof of improving relations. One has to understand that US interests in
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Pakistan is basically to prevent it from failing. Thus the future is full of optimism. There is a
common focus on combating terrorism, especially cyber terrorism. There are no major strategic
issues dividing the two countries; above all, there is a strong desire to move ahead in improving
bilateral relations. At the economic level, there is a possibility of more trade and investment
flows. But, it is for India to tap the potential. Cooperation in the non-military nuclear energy
sphere is another Greenfield area. At the same time, the US, for its part, should be cautious on
two fronts:

1. Military supplies to Pakistan

2. Kashmir issue
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BIBLIOGRAPHY

 https://www.mea.gov.in/Portal/ForeignRelation/USA_15_01_2016.pdf
 www.cfr.org/india/timeline-us-india-relations/p32994
 www.idsa.in/taxonomy/term/201
 https://newdelhi.usembassy.gov/us-india-relations.html
 thediplomat.com/2016/06/the-logic-of-closer-us-India-relations