USA-India relations in the present times
India-United States (USA) relations have shown a positive trajectory for the past few years and complement one another as the largest and the oldest democracy in the world, to safeguard global security, peace, human rights, economic prosperity, and investment.[i] There have been various issues where both countries have tried to promote common interests over international organizations like the UN, ASEAN, and Indo-Pacific Economic Framework for Prosperity (IPEF).[ii]
There have been major defense cooperation exercises (Yuddha Abhyas and Vajra Prahar) and deals like the Logistics Exchange Memorandum of Agreement in 2016 (LEMOA) and further COMCASA was signed in 2018.[iii]
Why do US elections matter for India?
- Strategic Partnership- USA elections matter to India as they are a major strategic partner of India. America sees India as an emerging global power that can counter China, challenging its hegemony and promoting peace in the Indo-Pacific region.
- Economic relations- The economic policies of the USA can affect the Indian market as India has huge trade benefits from exports to the USA. S. goods and services trade with India totaled an estimated $191.8 billion in 2022, Exports were $73.0 billion; and imports were $118.8 billion, The U.S. goods and services trade deficit with India was $45.7 billion in 2022.[iv]
- Social and Foreign issues- There can be diaspora effects as Indians are the largest and most influential community in the USA due to stringent H1-B visa issues and regulations unfavourable for India, which was done under former President Trump’s Term.[v]
- Issue of Unknown Killings and Human Rights- There is a noticeable rift on some issues among the countries where the USA is skeptical over India’s involvement in the killing of Hardeep Singh Nijjar and Gurpatwant Singh Pannun in Canada and the USA.[vi] The USA has raised concerns over the human rights issues that have been happening in India and the large amount of Islamophobic content emerging from India.[vii]
What could be the possible effects on India’s foreign policy?
The shift in power between presidential candidates Trump and Biden could lead to significant policy changes, influencing India’s decision on its long-term strategic partners in the following ways.
- Economic Sanctions- There can be economic sanctions if the Trump government takes place which has been prioritizing the “America first” agenda. In many instances, it has discredited the interests of India and at points sabotaged talks on Kashmir which is seen by India as an interference in internal affairs.[viii]
- Energy crisis- India also suffers from energy resource contraction due to the USA pulling out of the Iran nuclear deal and sanctioning Iran, making it difficult for India to import more energy resources and threatening India over the huge oil purchases from Russia. Its imports grew from zero in January 2022, before the war, to 1.27 million barrels a day in January 2023, data from research firm Vortexa shows.[ix]
- Hindrance over multi-lateral cooperation- There are various challenges concerning India in upcoming times and with the expanding grey zone conflicts, it has become difficult to choose a side. It would be a difficult task for Indian policymakers to maintain India’s relations with Russia with the heightening issue and regional stability.
Endnotes
[i] “India-US Relations.” 2023. Drishti IAS. Acessed May 27, 2024. https://www.drishtiias.com/daily-updates/daily-news-analysis/india-us-relations-5
[ii] Ibid.
[iii] Ibid.
[iv] “India | United States Trade Representative.” n.d. USTR. Accessed May 27, 2024. https://ustr.gov/countries-regions/south-central-asia/india.’
[v] Grossman, Derek. 2024. “US-India Ties Are More Fragile Than They Appear.” Foreign Policy. Accessed May 27, 2024. https://foreignpolicy.com/2024/04/04/india-us-modi-biden-partnership-coopepration-quad-aukus-conflict-geopolitics-china/.
[vi] Ibid.
[vii] “U.S. Has Been Raising Human Rights Concerns with India, Will Continue to Do so: Official.” The Hindu, August 8, 2023. Accessed May 27, 2024. https://www.thehindu.com/news/national/us-raised-human-rights-concerns-with-india-in-past-and-will-do-so-in-future-official/article67170886.
[viii] Sharma, Varun, and Arpit Khurana. 2024. “Why is the US upset with India’s Chabahar port deal with Iran? Explainer.” India TV News, May 21, 2024. Accessed May 27, 2024. https://www.indiatvnews.com/explainers/why-is-the-us-upset-with-india-s-chabahar-port-deal-with-iran-explainer-2024-05-21-932359.
[ix] HANADA, RYOSUKE. 2024. “Indian imports of Russian oil drop to lowest in a year.” Nikkei Asia. Accessed May 27, 2024. https://asia.nikkei.com/Economy/Trade/Indian-imports-of-Russian-oil-drop-to-lowest-in-a-year.
By: Aryan Dobriyal, Research Intern, CS3, USI