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The Hindu Editorial Analysis- 11th June 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

The Hindu Editorial Analysis- 11th June 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC

From warp speed to reset, the state of India-U.S. ties

Why in News?

This month marks a year since Prime Minister Narendra Modi’s state visit to the United States, where U.S. President Joseph Biden rolled out the red carpet and the U.S. oered to restart the decade-old plan to transfer technology for jet engines to India. The visit was marked by many such announcements of strategic and high-tech cooperation, with the U.S.-India initiative on Critical and Emerging Technology (iCET) considered a major success for bilateral relations that would set the stage for a whole new phase in ties.

iCET

  • It was announced by India and the US in May 2022 and was officially launched in January 2023 and is being run by the National Security Council of both countries.
  • Under iCET, both countries have identified six areas of cooperation which would include co-development and co-production, that would gradually be expanded to QUAD, then to NATO, followed by Europe and the rest of the world.
  • Under iCET, India is ready to share its core technologies with the US and expects Washington to do the same.
  • It aims to promote collaboration in critical and emerging technology areas, including AI, quantum computing, semiconductors, and wireless telecommunication.

Focus Areas of the Initiative:

  • AI research agency partnership.
  • Defense industrial cooperation, defense technological cooperation, and defense startups.
  • Innovation Ecosystems.
  • Semiconductor ecosystem development.
  • Cooperation on human spaceflight.
  • Advancement in 5G and 6G technologies, and adoption of OpenRAN (Open Radio Access Network) network technology in India

India-US Relations Overview

  • Global Strategic Partnership: India-US relations have evolved into a strong alliance, underscored by shared democratic values and converging interests across various domains.
  • Historical Ambivalence: The U.S. exhibited mixed feelings towards India's growth. Initially, it supported Indian stability and development, even during periods of strained political relations. This assistance was evident in times of crisis, such as in 1962.
  • Counterbalancing Regional Dominance: Simultaneously, the U.S. made efforts to counteract India's dominance in its region, aiming to maintain a balance, particularly with Pakistan.
  • New Opportunities for Cooperation: The focus on development and governance by India's new government has rejuvenated bilateral relations, adopting the motto "Chalein Saath Saath: Forward Together We Go" during the first summit between Prime Minister Narendra Modi and President Barack Obama on September 30, 2014, in Washington DC.
  • High-Level Political Exchanges: Frequent high-level visits have maintained momentum in bilateral cooperation.
  • Extensive Dialogue Architecture: A broad and evolving dialogue framework supports the long-term vision for India-US relations.
  • Broad-Based and Multi-Sectoral Relations: Today's relationship encompasses 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 India-US Relations Overview

  • Increased Interactions: There has been a significant rise in the frequency of high-level visits and exchanges between India and the U.S., enhancing bilateral relations.

  • Highlighting Soft Power Diplomacy: The "Howdy Modi" event in the U.S. and the "Namaste Trump" event in India showcased India's soft power, with both Prime Minister Modi and outgoing President Trump participating.

  • Strengthening Bilateral Relations: These visits have been crucial in further strengthening the multifaceted India-US relations.

Key High-Level Dialogue Mechanisms

  • India-US 2+2 Ministerial Dialogue: Led by the foreign and defense ministers from both countries, this dialogue has had three rounds so far—in September 2018, December 2019, and October 2020.

  • India-US Commercial Dialogue: Chaired by India's Minister of Commerce and Industry and the U.S. Secretary of Commerce, the last dialogue was held in Delhi in February 2019.

  • India-US Economic and Financial Partnership: Led by the Finance Ministers of both nations, the most recent meeting took place in Delhi in November 2019.

  • India-US Trade Policy Forum: Conducted by the Commerce and Industry Minister from India and the U.S. Trade Representative, the last meeting was in Washington, D.C. in October 2017.

  • India-US Strategic Energy Partnership: Led by India’s Minister of Petroleum and Natural Gas and the U.S. Secretary of Energy, held last in Delhi in April 2018.

  • India-US Homeland Security Dialogue: Guided by India’s Minister of Home Affairs and the U.S. Secretary of Homeland Security, the latest dialogue occurred in Washington, D.C. in May 2013.

Economic Dimensions of India-US Relations

Trade Surplus: The United States is one of the few countries with which India has a trade surplus. Despite a decreasing trend, the surplus remains substantial at $23.3 billion.

  • Bilateral Trade Growth: From 1999 to 2018, trade in goods and services between India and the US expanded from $16 billion to $142 billion. By 2019, this figure reached $149 billion.

  • Manufacturing Trade: In 2018, Indian manufacturing exports to the US reached $50.1 billion, marking a $6 billion increase from 2017.

  • Defence Trade: The US has become India's second-largest arms supplier. Defence trade, which was nearly negligible in 2008, soared to over $15 billion by 2018.

  • Aircraft Orders: India is expected to order around 2,300 new planes over the next 20 years, potentially from US manufacturers like Boeing.

  • Crude Imports: India's imports of US crude oil tripled in early 2019, underscoring growing energy ties.

India-US Relations: Defense and Security

Overview

India-US defense relations have become a cornerstone of the strategic partnership between the two nations, characterized by an intensification in defense trade, joint military exercises, personnel exchanges, and cooperation in areas like maritime security and counter-piracy.

Key Aspects of Defense Cooperation

  1. Joint Military Exercises:

    • India conducts more bilateral exercises with the US than any other country, emphasizing the depth of their military cooperation.
    • Notable exercises include Yudh Abhyas (Army), Vajra Prahar (Special Forces), Tarkash (Naval), Tiger Triumph (Tri-service), and Cope India (Air Force), which bolster tactical skills and interoperability.
  2. Defense Trade:

    • The total value of defense-related acquisitions from the US has surpassed $15 billion, marking significant growth in defense trade.
    • High-profile acquisitions and the transfer of advanced technology, such as the offer of an MTCR Category-1 Unmanned Aerial System to India, underscore this trend.
  3. Defense Technology and Trade Initiative (DTTI):

    • This initiative aims to promote co-development and co-production of defense equipment, further deepening the strategic partnership.

Foundational Defense Agreements

  1. Logistics Exchange Memorandum of Agreement (LEMOA):

    • Signed in August 2016, LEMOA allows both militaries to use each other's facilities for logistics support, enhancing operational readiness and strategic reach.
  2. Communications Compatibility and Security Agreement (COMCASA):

    • Concluded in September 2018, this agreement enables secure communication between the two militaries, ensuring confidentiality and security in operations.
  3. Basic Exchange and Cooperation Agreement (BECA):

    • BECA facilitates the exchange of geospatial data, enhancing the accuracy of India’s missile systems and armed drones, thus boosting its defense capabilities.

Multilateral Engagements and Strategic Initiatives

  • Global Cooperation: India and the US collaborate at various multilateral forums like the United Nations, G-20, and the World Trade Organization, aligning their strategies on global economic and security issues.
  • Coalition for Disaster Resilient Infrastructure: In 2019, the US joined this India-led initiative, which aims to build resilient infrastructure that can withstand natural disasters.

Legislative Support

  • National Defense Authorization Act (NDAA) for FY 2020: The US Congress passed an amendment to strengthen defense ties with India, signaling deep strategic commitments and recognizing India as a major defense partner akin to a non-NATO ally.

Challenges and Considerations

  • CAATSA (Countering America’s Adversaries Through Sanctions Act):
    • Enacted in August 2017, CAATSA poses potential challenges for India’s defense relations with Russia, as it could affect India's significant defense and energy transactions with Russia, Iran, and North Korea.

Environmental and Global Health Agreements

Paris Agreement:
  • Both countries have been active in global climate change discussions, committing to significant reduction in greenhouse gas emissions and aiming for "net zero emissions" between 2050 and 2100.

Strategic Implications

The defense relationship between India and the US is robust and multi-faceted, featuring high-level strategic dialogues, significant defense transactions, and foundational defense pacts that enhance their operational capabilities and strategic alignment. These engagements not only strengthen bilateral ties but also have significant implications for regional security dynamics, particularly in the Indo-Pacific region. The Quad, involving the US, India, Japan, and Australia, although not a formal military alliance, plays a crucial role in maintaining regional stability and countering strategic challenges, notably from China. This complex interplay of cooperation and strategic diplomacy underscores the critical nature of India-US defense relations in contemporary international affairs.

India-US Relations: Energy and Climate Change

Energy Dialogue and Strategic Partnerships

  1. India-US Energy Dialogue:

    • Launched in May 2005 to boost trade and investment in the energy sector.
    • Last met in September 2015, it includes six working groups focusing on oil & gas, coal, power and energy efficiency, new technologies & renewable energy, civil nuclear cooperation, and sustainable development.
  2. Strategic Energy Partnership:

    • Started in 2018, this partnership aims to enhance energy security and strategic alignment between the two nations.
    • Involves key stakeholders like Nuclear Power Corporation of India Limited (NPCIL) and Westinghouse Electric Company, discussing projects like the construction of six nuclear reactors in Kovvada, Andhra Pradesh.
  3. Civil Nuclear Cooperation:

    • A significant bilateral agreement was signed in October 2008.
    • Ongoing R&D collaborations are reviewed regularly, emphasizing the deepening cooperative ties in civil nuclear energy.
  4. Natural Gas and Crude Imports:

    • India began importing crude oil and LNG from the US in 2017 and 2018, respectively, with imports valued at $6.7 billion.
    • The India-US Natural Gas Task Force, created in 2018, supports this growing energy trade.
Climate Change and Environmental Agreements
  1. Historical Environmental Agreements:

    • Both nations have participated in major international environmental agreements, such as the Stockholm Convention, Paris Agreement, and Kyoto Protocol.
    • India and the US have collaborated on global initiatives aiming to tackle climate change and promote sustainable development.
  2. US Withdrawal and Re-Entry into the Paris Agreement:

    • The US formally exited the Paris Agreement in November 2020 under President Donald Trump, who cited the agreement as unfair.
    • President Joe Biden, upon his election, committed to re-joining the agreement, emphasizing a renewed focus on promoting clean energy and climate-friendly infrastructure.

India-US Relations in Science & Tech/ Space Cooperation

  1. Science and Technology Cooperation:

    • The India-US Science and Technology Cooperation Agreement, renewed in September 2019, fosters collaboration in various scientific fields.
    • The Indo-US Science & Technology Forum (IUSSTF) plays a vital role in promoting joint research and innovation.
  2. Space Cooperation:

    • Long-standing cooperation in civil space endeavors includes joint projects in earth observation, satellite navigation, and space exploration.
    • ISRO and NASA are currently enhancing their collaborative efforts in Mars exploration, helio-physics, and human spaceflight.
  3. Pandemic Response Collaboration:

    • During the COVID-19 pandemic, virtual networks were established to enable scientists from both countries to engage in joint research activities, demonstrating the adaptive and collaborative spirit of both nations in times of crisis.

India-US Relations and Cooperation on Education

Educational Exchange and Collaboration

  • Strong Educational Ties: The US is a top destination for Indian students, with over 200,000 students enrolled in various higher education programs.
  • Cultural and Academic Exchange: These educational exchanges foster deeper cultural understanding and are a vital aspect of the diplomatic relationship between the two nations.

Impact of US Reclassification on India’s Trade Status

  • WTO Designation: The US reclassified India from a "developing" to a "developed" country based on criteria like GDP and trade volume, impacting India's trade benefits and obligations under various international norms.
  • Economic Implications: This reclassification could affect India's eligibility for certain trade benefits intended for developing countries.

H-1B and H-4 Visa Issues

  • Visa Policies: The US has tightened policies around H-1B visas, which affect Indian tech professionals and their spouses on H-4 visas.
  • Impact on Workforce: These changes have significant implications for Indian expatriates in the US and can influence the bilateral relations between the two countries.

Role of the Indian Diaspora

  • Influence of Diaspora: The large Indian community in the US plays a critical role in bilateral relations, influencing American domestic policies and bilateral discussions.
  • Soft Power: The diaspora serves as a bridge between the two nations, promoting mutual understanding and cooperation.

Biden’s Presidency: Implications for India-US Relations

  • Trade and Investment: President Biden's administration might enhance the trade relationship, potentially softening previous stances on tariffs and trade barriers.
  • Climate Policy: Biden’s commitment to re-join the Paris Agreement signals a cooperative future in global climate policy efforts.
  • Visa and Immigration Policies: There could be a more favorable environment for immigration issues under Biden, impacting visas and opportunities for Indian nationals.

Strategic and Defense Ties

  • Defense Cooperation: Continuation of strong defense ties, including sales and technology transfers, remains likely, supporting India’s strategic autonomy and regional security.
  • Counterbalancing China: The US-India defense partnership is also seen as a counterbalance to China’s regional influence.

Economic and Commercial Ties

  • FDI and Economic Engagement: The US remains a significant source of FDI for India, reflecting robust economic engagement.
  • Technology and Innovation: Ongoing collaborations in tech and innovation are likely to expand, driven by both countries’ focus on advancing cutting-edge technologies.

Long-term Perspectives

  • Global Strategy: The strategic partnership is expected to strengthen, with both nations benefitting from each other’s role in a stable Indo-Pacific region.
  • Multilateral Cooperation: Increased cooperation in global forums and alignment on major international issues will likely continue, enhancing both nations' global influence.

These facets of India-US relations highlight the multifaceted interactions between the two nations, encompassing education, trade, defense, and strategic cooperation, pivotal for shaping the future geopolitical landscape.

The document The Hindu Editorial Analysis- 11th June 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC is a part of the UPSC Course Current Affairs & Hindu Analysis: Daily, Weekly & Monthly.
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