The Hindu Editorial Analysis- 15th November 2022 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

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Why in News?

Treasury Secretary Janet Yellen’s visit to India last week highlights the renewed focus in the U.S. on strengthening economic ties with Asia’s third-largest economy and ‘one of America’s indispensable partners’.

INDIA-U.S. BILATERAL RELATIONS

Basics and Background

• India-U.S. bilateral relations have developed into a “global strategic partnership“, based on shared democratic values and increasing convergence of interests on bilateral, regional and global issues.
• Historically, the U.S. made an ambivalent approach to the growth of India’s power.
• On the one hand, it valued Indian stability and promoted those aspects that served its larger interests. That explains the US’s generosity when it came to development programs at a time when our political relations were not at their best. When there were serious challenges such as in 1962, American policy makers were actually anxious about our future.
• But on the other hand, they worked overtime to neutralize our regional dominance strove particularly hard to ensure some parity with Pakistan.
• The emphasis placed by the new Government in India on development and good governance has created new opportunity to reinvigorate bilateral ties and enhance cooperation under the new motto “Chalein Saath Saath: Forward Together We Go”, which was adopted following Prime Minister Narendra Modi’s first summit with President Barack Obama on 30 September 2014 in Washington DC.
• Regular exchange of high level political visits has provided sustained momentum to bilateral cooperation, while the wide-ranging and ever-expanding dialogue architecture has established a long term framework for India-U.S. engagement.
• Today, the India-U.S. bilateral cooperation is broad-based and multi-sectoral, covering trade and investment, defence and security, education, science and technology, cyber security, high-technology, civil nuclear energy, space technology and applications, clean energy, environment, agriculture and health.
• Political Relations
• The frequency of high-level visits and exchanges between India and the U.S. has gone up significantly of late.
• The recent visit of PM Modi and outgoing US President Donald Trump in the events of “Howdy Modi” and “Namaste Trump” respectively highlighted India’s soft power diplomacy all over the world.
• The outcomes generated by these visits have been instrumental in further strengthening and developing the multifaceted ties between the two countries.

High-Level Dialogue Mechanisms

• India-US 2+2 Ministerial Dialogue
  • India-U.S. 2+2 Ministerial Dialogue is led by the heads of foreign and defence ministries of India and the US.
  • Three rounds of this Dialogue have been held so far (in September 2018, December 2019 and October 2020).
• India-U.S. Commercial Dialogue
  • The India-U.S. Commercial Dialogue is led by the Minister of Commerce and Industry (CIM) and the U.S. Secretary of Commerce.
  • This was last held in Delhi in February 2019.
• India – U.S. Economic and Financial Partnership
  • The India – U.S. Economic and Financial Partnership is led by the Finance Minister (FM) and the U.S. Secretary of the Treasury.
  • This was last held in Delhi in November 2019.
•  India-U.S. Trade Policy Forum
  • The India-U.S. Trade Policy Forum is led by CIM and the U.S. Trade Representative (USTR).
  • This was last held in Washington, D.C. in October 2017
•  India-U.S. Strategic Energy Partnership
  • The India-U.S. Strategic Energy Partnership is led by the Minister of Petroleum and Natural Gas 2 and the U.S. Secretary of Energy.
  • This was last held in Delhi in April 2018.
•  India-U.S. Homeland Security Dialogue (HSD)
  • The India-U.S. Homeland Security Dialogue is led by the Minister of Home Affairs and the Secretary, U.S. Department of Homeland Security.
  • This was last held in Washington, D.C. in May 2013.

Trade Relations

• The US is one of the countries, with which India enjoys a trade surplus. Although the trade surplus is reducing with time, it is still at $23.3 billion.
• From 1999 to 2018, trade in goods and services between the two countries surged from $16 billion to $142 billion. In 2019, overall U.S.-India bilateral trade in goods and services reached $149 billion.
• In 2018, the Indian manufacturing trade in the US reached US$50.1 billion for the first time, surging by approximately US$6 billion over the 2017 figures.
• The US has become India’s second-largest arms supplier. India–US defence trade. From nearly zero in 2008, it has increased to over US$15 billion in 2018
• India is poised to order a record 2,300 new planes, possibly from US manufacturers such as Boeing, over the next 20 years.
• India’s import of US crude rose threefold in early 2019.

Defence and Security

• Defence relationship has emerged as a major pillar of India-US strategic partnership with intensification in defence trade, joint exercises, personnel exchanges, and cooperation in maritime security and counter-piracy.
• India conducts more bilateral exercises with the U.S. than with any other country.
• Some important bilateral exercises are: Yudh Abhyas, Vajra Prahar, Tarkash, Tiger Triumph, and Cope India.
• Aggregate worth of defence-related acquisitions from the U.S. is more than US$ 15 billion.
• The India-U.S. Defence Technology and Trade Initiative (DTTI) is aimed at promoting co-development and coproduction efforts.
• The US has tried to clear all roadblocks in the way of India for making any defence related purchase e.g. India is “the first non-treaty partner to be offered an MTCR Category-1 Unmanned Aerial System” from US.
• Before the present BECA deal (being negotiated), Logistics Exchange Memorandum of Agreement (LEMOA) and Communications Compatibility and Security Agreement (COMCASA) were signed between India and US. This completes a troika of “foundational pacts” for deep military cooperation between the two countries.
• India and the United States cooperate closely at multilateral organizations, including the United Nations, G-20, Association of Southeast Asian Nations (ASEAN) Regional Forum, International Monetary Fund, World Bank, and World Trade Organization.
• In 2019, the United States joined India’s Coalition for Disaster Resilient Infrastructure to expand cooperation on sustainable infrastructure in the Indo-Pacific region.
• US Senate and House of Representatives have passed an amendment in the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2020 to strengthen and enhance its major defence partnership with India. This will ensure that the US State Department treats India as a non-member NATO ally for the purposes of the Arms Export Control Act.

Energy and Climate Change

• The US-India Energy Dialogue was launched in May 2005 to promote trade and investment in the energy sector, and held its last meeting in September 2015 in Washington DC.
• There are six working groups in oil & gas, coal, power and energy efficiency, new technologies& renewable energy, civil nuclear co-operation and sustainable development under the Energy Dialogue.
• Investment by Indian companies like Reliance, Essar and GAIL in the US natural gas market is ushering in a new era of India-U.S. energy partnership.
• An India-US Natural Gas Task Force was also created in 2018. India has started importing crude and LNG from the US from 2017 and 2018 respectively.
• Previously, India has walked with the US from Stockholm Convention to Paris Agreement, Rio Summit, Kyoto Protocol and Copenhagen Summit.
• The fine balance struck by India and the U.S. culminated in the Agenda 21, raising hopes for a renaissance in the areas of both environment and development.
• US and other developed countries began to default on their commitments and began demanding mandatory cuts from China, India and Brazil during the Berlin negotiations (1995).
• The bilateral civil nuclear cooperation agreement was signed in October 2008. India and the US have a Civil Nuclear Energy Working group on R&D activities which has met ten times and has ongoing projects under R&D collaboration which are reviewed by the Working Group.
• A US company, Westinghouse is in discussions with Nuclear Power Corporation of India Limited (NPCIL) for implementation of a project that envisages six AP 1000 reactors at Kovvada (A.P.). Once implemented, the project would be among the largest of its kind.
• US India launched Strategic Energy Partnership, in 2018, to enhance energy security, bolster strategic alignment etc. Nuclear Power Corporation of India Limited (NPCIL) and Westinghouse Electric Company are looking to finalize the techno-commercial offer for the construction of six nuclear reactors. Also, India has started importing crude and LNG from the US in recent years, with total imports estimated at $6.7 billion — having grown from zero.

US left the Paris Agreement

• US formally left the Paris Climate Agreement on 4th Nov 2020, three years after President Donald Trump announced his intention to undo what had been seen as a key achievement of his predecessor Barack Obama.
• During his 2016 presidential campaign, Donald Trump had described the Paris Agreement as “unfair” to US interests, and had promised to pull out of the agreement if elected.
• So in June 2017, months after his inauguration, Trump announced his government’s decision to quit the accord
• The US could not immediately exit the Paris Agreement, however, as United Nations rules permitted a country to apply for leaving three years after the accord came into force, i.e. November 4, 2019.
• The US formally applied to leave on that day, and the departure automatically came into effect on November 4, 2020, at the end of a mandatory year-long waiting period.
• The elected Democratic President Joe Biden has long maintained an election promise that the US would re-join the Paris Agreement.
• Joe Biden, who will replace Trump as US President from 2021, has proposed a $2 trillion spending plan that includes promoting clean energy and climate-friendly infrastructure.

Science & Tech/ Space Cooperation

• The multi-faceted cooperation between India and the US in the field of Science and Technology has been growing steadily under the framework of the India-US Science and Technology Cooperation Agreement signed in October 2005, which was renewed for a period of ten years in September 2019.
• The Indo-US Science & Technology Forum (IUSSTF) which was established by India and the US as an autonomous, bi-national organization in the year 2000 to promote cooperation in Science, Technology and Innovation is playing an important role in strengthening cooperation in this field.
• Both countries also have a long history of cooperation in civil space arena that includes cooperation in earth observation, satellite navigation, and space science and exploration.
• The India-US Joint Working Group on Civil Space Cooperation regularly reviews the status of cooperation and identifies new areas for furthering space cooperation.
• ISRO and NASA are also working towards intensifying cooperation in Mars exploration, helio-physics, and human spaceflight through relevant working groups between both sides.
• During COVID-19, Indo-US Virtual Networks for COVID-19 were established to provide a platform to enable Indian and American scientists from academia, to carry out joint research activities.

Cooperation on Education

• India and the US have very strong linkages and collaboration in the field of higher education.
• US is one of the most favoured destinations by Indian students for higher education.
• More than 200,000 Indian students are currently pursuing various courses in the US

Areas of Contention

• India is a high tariff country – the USA wants these to reduce and want India to have a more predictable regime. Although the USA and India’s trade grew by 10 % per annum for the past 2 years it has much more potential.
• Movement of skilled persons – Current US President had always made immigration as an election theme. This rhetoric could sharpen in the election year.
• Civil Nuclear cooperation deal was signed in 2008. However, because of thenuclear liability law in India and Westinghouse’s bankruptcy, it has not taken off.
• USA and Pakistan relation – theUSA has nuanced its position on Pakistan in the last few months.USA- Pakistan and Taliban deal will be some of the criteria for India to test the USA. also, Pakistan has consistently lobbied with the USA to mediate between India and Pakistan on J& K issue. However, India has consistently maintained that India sees no scope or role for third-party involvement on Kashmir.
• ‘America First’ Outlook– It magnifies the susceptibility of the bilateral dynamic to transactional. It has created inconsistencies between ‘Make in India’ and ‘America First’ push to indigenisation.
• Data localisationrequirements of India and the new e-commerce regulations that have become concerns for the U.S. side.
• USA extraterritorial sanctions – In Trump’s presidency USA has imposed imposed several extraterritorial sanctions (CAATSA) targeting Russia and Iran which would have direct ramifications for India.

Way Forward

• India has to change the nature of its economic and commercial ties with China.
• The areas where the bilateral partnership has the potential of evolving most positively for India relate tohealth, education and science and technology.
• There should not be any reluctance in developing ties in defence industries, too, but it cannot be forgotten that no country will part with any of its critical technologies.
• But there cannot be a substitute for developing indigenous capacity for India’s needs for weapon systems.
• Despite the historic nuclear deal (2008), civilian nuclear cooperation has not taken off, but the agreement with Westinghouse to build six nuclear reactors will finally bring US nuclear energy on Indian soil.
• In order to counter China in the maritime domain, India needs to fully engage with the US and other partners in the Indo-pacific region, in order to preserve the freedom of navigation and the rules-based order.
• In international politics, there are no permanent friends and no permanent enemies, only permanent interests in such a scenario India must continue to pursue its foreign policy of strategic hedging.