India–US Relations: Shift From Trust to Transaction

Context

India–US relations are in a transition mode from a comprehensive strategic partnership to a more restricted and transactional partnership in response to the shifting global geopolitical and economic priorities.

Evolution of India–US Relations

• Historical Foundation

  • The history of the last 30 years of India and US relations had been based on strategic convergence and mutual geopolitical interests.
  • The United States saw India as a vital balancer of China’s rise in Asia.
  • The United States also viewed India as a key ally in efforts to combat terrorism.
  • India was perceived as a market for the USA goods, investments and defence exports.
  • The US also saw India as a source of skilled professionals that would be contributing to the economy of the US.

• India’s Strategic Expectations

  • India always believed in the support of the United States towards the growth of its nation as a major power in the world.
  • India regarded the USA as a source for advanced defence technology and military equipment.
  • India also looked forward to economic cooperation in the fields of trade, investment and technology transfer.
  • India viewed the United States as a valuable counterweight to the balance of forces in the region of Asia.

Shift in US Strategic Thinking

• Changing US Priorities

  • In the United States, the geopolitical aspect is slowly being replaced by economic and technological competition.
  • Now there is a focus on correcting the trade imbalance, semiconductor supply chains, AI and critical minerals in the United States.
  • The U.S. has scaled back its focus on India’s strategic importance in the region.

• Resulting Impact

  • India is no longer considered as a fulcrum of the US global strategy.
  • India is viewed as an American market of goods, services and defence equipment.
  • The concept of “special strategic partnership”, which was initially strong, has decreased in strength over time.
  • India’s presence in the geopolitics of the Eurasian continent.India’s involvement in the geopolitics of Eurasia.

• Regional Strategic Arenas

  • The United States sees Eurasia as a geopolitical space between Europe and East Asia, which is vital for its interests.
  • The U.S. is trying to keep Russia in check in Europe, manage the instability in the Gulf and counter China in Asia.

• India’s Limited Role

  • India has been playing a neutral role in the Russia-Ukraine conflict, essentially as a geopolitical counterpoise.
  • India has increased its interactions in the Gulf region while Pakistan also has become a key interlocutor for some U.S. diplomatic interests.
  • In the Indo Pacific region, India has helped to build maritime security, but has not yet been fully part of the collective China security framework.

China Challenge and India’s Position

• Shift in US-China Strategy

  • The US has now transitioned from military containment towards China to a strategy of technological and economic competition.
  • Emphasis has shifted to artificial intelligence, semiconductor control and supply chain oversight.

• India’s Constraints

  • India does not seem to be ready to take the place of China as a global manufacturing hub.
  • Advanced semiconductor and AI ecosystems are relatively small in India.
  • India’s dominance in critical mineral supply chains for advanced technology is not yet in place.

From Strategic Partnership to Transactional Relationship

• Earlier Phase

  • Previously, there was a long term strategic convergence and growing defence partnership between India and the United States.
  • The two countries collaborated in the fields of regional security and economic development and counter-terrorism.

• Current Phase

  • Today the relationship is more and more focused on the issues and fueled by short-term national interests.
  • The cooperation is mostly centred on defence sales and energy trade, technology partnerships, and the management of migration.

• Key Reality

  • The bilateral relationship still has a very high level of security, but they are no longer very tightly aligned in strategy.
  • The relationship is becoming more transactional, less strategic, than ever before.

Implications for India

• Opportunities

  • India continues to gain advanced technologies and capabilities in defence from the United States.
  • Foreign direct investment and technology cooperation in specific fields are extended to India.
  • India continues to play a crucial role in Indo-Pacific maritime security structures.

• Challenges

  • With the United States reducing its strategic support to India in balancing China, it will be a challenge for India.
  • Pressure on immigration and the skilled labour mobility problem in India.
  • Trade disputes and tariff differences need to be dealt with sensitively by India.

Way Forward

• India needs to boost its defense industry production capabilities in accordance with the Government of India’s initiative Atmanirbhar Bharat.
• India needs to build closer ties with the QUAD nations, but must remain independent.
• India needs to develop emerging technologies like Artificial Intelligence, semiconductor manufacturing etc.
• India should expand its international alliances beyond the United States.
• India should keep its relations balanced with other global powers such as Russia, Europe, and Global South.

Source: The Indian Express

Mains PYQ

Q. ‘What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem and ambitions’. Explain with suitable examples. (2019)

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