- Key Areas: Defense, technology, trade, energy, and regional cooperation.
Key Areas of Cooperation
1. Defense and Security
- Transition from buyer-seller to co-production and technology sharing.
- India as a Major Defense Partner (MDP) and inclusion in STA-1.
- Access to advanced technologies, including potential F-35 fighter jets.
- Enhanced AI-driven defense capabilities through collaborations (e.g., Anduril-Mahindra).
- Ongoing procurement of Javelin missiles and Stryker vehicles.
2. Trade and Investment
- Goal to double bilateral trade to $500 billion by 2030.
- Planned Bilateral Trade Agreement (BTA) by 2025.
- Reduction of tariffs and improved market access:
- India reduces tariffs on U.S. goods (e.g., bourbon, motorcycles).
- U.S. improves access for Indian agricultural products (e.g., mangoes).
3. Energy and Climate
- U.S. as a top supplier of crude oil and LNG to India.
- Focus on hydrocarbon trade, renewables, and nuclear energy.
- India to join the International Energy Agency (IEA) as a full member.
4. Technology and Innovation
- Cooperation in AI, semiconductors, and biotech under the U.S.-India TRUST initiative.
- INDUS Innovation platform to foster private sector collaboration in defense tech.
5. Space Collaboration
- NASA-ISRO partnerships in human spaceflight and planetary exploration.
- Upcoming NISAR satellite to map Earth’s surface changes.
- India’s participation in the Artemis Accords.
6. Indo-Pacific Cooperation
- Commitment to a free and open Indo-Pacific as Quad partners.
- Initiatives for maritime patrols and disaster response.
7. People-to-People Ties
- Indian-American community of 5 million in the U.S.
- Over 330,000 Indian students in the U.S. contributing to the economy.
Key Areas of Friction
1. Trade Disputes
- Ongoing tariff disputes and trade imbalances.
- U.S. critiques high Indian tariffs; India resents non-tariff barriers.
2. Export Control Restrictions
- U.S. export controls limit technology transfer, affecting defense ties.
3. Strategic Policy Differences
- Divergence in approaches to China and regional security.
- India’s non-alignment with Western security frameworks is a point of contention.
4. Visa and Immigration Issues
- H-1B visa restrictions and delays affect Indian professionals.
5. Nuclear Cooperation Challenges
- Stalled civil nuclear cooperation due to liability concerns.
6. Digital Trade and Data Issues
- U.S. opposition to India’s data localization mandates; India insists on data sovereignty.
7. Global Governance Divergences
- Differences in approaches to global governance and positions on Russia.
Recommendations for Enhancing Ties
- Strengthen Defense Cooperation: Push for greater technology transfer and joint production.
- Address Trade Barriers: Finalize the Bilateral Trade Agreement to reduce disputes.
- Deepen Energy Cooperation: Expand energy deals and collaborate on renewable energy.
- Advance Technology Partnerships: Accelerate joint R&D in emerging technologies.
- Enhance Indo-Pacific Cooperation: Increase maritime and intelligence collaboration.
- Reform Immigration Policies: Negotiate for higher H-1B caps and streamlined processes.
- Engage in Global Governance: Align trade policies and coordinate on counterterrorism.
Way Forward
- The recent diplomatic engagements underscore the resilience of India-US ties.
- Significant progress has been made, but challenges in trade and strategic alignment persist.