India – U.S. Relations: A General Overview

There has been a significant transformation in the India-US relations in the past few years.

            Prime Minister Dr. Manmohan Singh’s meeting with President Bush on September 21, 2004 on the sidelines of UN General Assembly, provided an opportunity for the two leaders to further strengthen these relations. Prime Minister’s comments that the two countries’ relations have grown in diverse ways and that ‘the best is yet to come’ was a clear reflection of the priorities and policies of the government in India. The anxiety, on both sides, on the future of bilateral relations, as a result of coming into power of the UPA government in India last year, was short lived and it is a testimony of the fact that there is a broad national consensus in India over its foreign policy including further strengthening of India-US relations.

            The joint statement, issued after the meeting between Prime Minister Dr. Manmohan Singh and President Bush stated that bilateral relations had never been as close as they are at present. Both the leaders agreed that policies encouraging greater integration of the two economies and with the global economy would offer opportunities to expand and strengthen their economic partnership.

Bilateral interactions continued at a high pace during 2004. EAM Shri Yashwant Sinha was in Washington in January, while EAM Shri Natwar Singh participated in the memorial service for former US President Ronald Reagan in June. Chief Of Army Staff Gen N.C. Vij was in USA in March. Foreign Secretary Shri Shyam Saran visited Washington in September in connection with the conclusion of the first phase of the NSSP and, again, in November as co-chair of the India-US High Technology Cooperation Group (HTCG). Dr. S. Narayan, Economic Adviser to PM visited Washington in April. Prominent from the US side to visit India were Secretary of State Colin Powell in March, Secretary of Defence Donald Rumsfeld in December, Secretary of Health and Human Services Tommy G. Thompson in April, Deputy Secretary of State Richard Armitage in July, Under Secretary of State for Economic, Business and Agricultural Affairs Alan Larson in September, and Under Secretary of Commerce for Industry and Security Kenneth I. Juster in June and October. EAM Shri K Natwar Singh also met US Secretary of State Colin Powell in Jakarta on January 6 this year on the sidelines of ASEAN special meeting convened in the aftermath of the Tsunami disaster.

The shared vision of the leaders of the two countries of developing a strategic partnership between India and the United States received a boost with the release of a statement on 12th/13th January 2004 called New Steps in Strategic Partnership (NSSP) to expand cooperation in the areas of civilian nuclear activities, civilian space programmes, and high technology trade. In addition, the two countries have also agreed to expand dialogue on missile defence. 

The proposed cooperation under NSSP is to progress through a series of reciprocal steps that will build on each other.  It will include expanded engagement on nuclear regulatory and safety issues and missile defence, ways to enhance cooperation in peaceful uses of space technology, and steps to create the appropriate environment for successful high technology in peaceful uses of space technology, and steps to create the appropriate environment for successful high technology commerce.  In order to combat the proliferation of weapons of mass destruction, relevant laws, regulations and procedures will be strengthened, and measures to increase bilateral and international cooperation in this area will be employed.  These cooperative efforts will be undertaken in accordance with respective national laws of the two countries and their international obligations.

The first phase of the NSSP was completed in September 2004 leading to removal of ISRO headquarters from the US Department of Commerce Entity List and removal of licensing requirements for low-level dual use items exported to ISRO subordinate entities.  It also resulted in grant of “presumption of approval” status to all dual use items not controlled by the Nuclear Suppliers Group (NSG) for use in the “balance of plant” activities at nuclear facilities subject to International Atomic Energy Agency (IAEA) safeguards.

            Two rounds of the India–US High Technology Cooperation Group (HTCG) meetings took place last year – highlighting the importance attached to the dialogue. The latest round, the fourth since the formation of HTCG in the year 2003, took place in November in Washington with a view to discuss expanding business opportunities in the areas of defence technology and information technology. It included a session on explaining various aspects of the US dual-use munitions licensing processes and informing US and Indian industry about their responsibilities under the US laws and regulations. Over 120 representatives from US and Indian businesses along with officials from both the countries took part in the event.

A conference on India-US space science and commerce was held in Bangalore in June 2004, where it was announced that the Bush administration had approved a license authorizing Boeing Satellite Systems to work with the ISRO on possible joint development and marketing of communication satellites.

The two countries are also discussing the possibility of India joining the Proliferation Security Initiative (PSI) – an initiative announced in May 2003 by President Bush in Krakow, Poland to interdict passage of Weapons of Mass Destruction to rogue States and other unauthorized groups/individuals. Discussions on the Container Security Initiative are also in progress.

Representatives of India and the United States initialed a landmark Open Skies air transport agreement on January 15, 2005. This agreement significantly modernizes India-US aviation relations by allowing airlines to make commercial decisions with minimal government intervention. It provides for open routes, capacity, frequencies, designations, and pricing, as well as opportunities for cooperative marketing arrangements, including code sharing. It also includes all-cargo seventh freedom rights, allowing airlines to perform international cargo operations with no connection to their homeland. Civil Aviation Minister Shri Praful Patel and US Transportation Secretary Norman Mineta launched the talks in Washington on January 13.

Military-to-military cooperation remained one of the most vibrant, visible and proactive aspects of the transformation in the India-US relations. A June 2004 session of the India-US Defence Policy Group (DPG) meeting reviewed accomplishments since the last such meeting held in 2003. India and the United states continued to hold joint exercises involving all military branches. Mock air combat between the two air forces took place in India in February 2004. In July 2004, an Indian Air Force contingent participated in the Cooperative Cope Thunder exercises in Alaska. About 2,000 Indian and US Navy personnel took part in Malabar 04, a training exercise off the Goa coast of India on October 2004.

          Six meetings of the Joint Working Group on Counter-terrorism have been held so far – with the latest being held in New Delhi on August 31, 2004.  These have proved useful.  Apart from ongoing cooperation in the area of anti-terrorism training, agencies from both sides have been engaged in intelligence sharing. Both sides have also initiated cooperation in the area of cyber-terrorism. 

The United States hosted the second meeting of the US-India Cyber Security Forum on November 9-10, convening government and industry representatives from both countries to identify areas for collaboration in combating cyber-crime, cyber security research and development, information assurance and defence cooperation, standards and software assurance, and cyber incident management and response. 

US continued to be largest trading partner for India. India’s exports to the United States during 2003 totalled nearly $13.1 billion, led by export of apparel and household goods, diamonds, and jewellery. US exports to India in 2003 were valued at $5 billion (up 22% from 2002), with machinery and transport equipment (40%) and chemicals (22%) as leading categories. The United States has welcomed government of India’s commitment to increase investment opportunities in telecom, insurance and civil aviation, and has drawn its attention to the urgency of moving ahead with other reforms, such as tax reform, trade liberalization, and the elimination of subsidies.

Formation of a new India Caucus “Senate India Caucus” on April 29, 2004, co-chaired by Senator John Cornyn and Senator Hillary Clinton, provided yet another important forum for leaders of the two countries to promote strategic and economic cooperation between the two countries.