Shift in Power Dynamics
As 2016 witnessed one of the most awaited presidential elections of the world, a wave of controversial changes were ushered in by the newly elected president of The United States of America, Donald Trump immediately after his resounding victory against his Democrat counterpart leader Hilary Clinton.
With a slightly modified slogan of ‘let’s make America great again’ and an extremely straightforward ‘America first’ approach some might call it the rise of pragmatism rather than a principle based or moralistic modus operandi, something that shared no resemblance to the preceding Obama administration.
Such a monumental transition in the single largest hegemon of the world would come with some natural consequences for the rest of the globe as well.
Indo-US relations have also undergone great levels of permutations by virtue of the changed power relations and ideologies. New convergences and divergences have emerged since then.
Indo - US Relations in the Era of Trump and Modi
Indo - US Relations in the Era of Trump and Modi
One of the principal sub structures of all that has served as common interests between the two countries is to check and balance the growth of China.
India’s rising concern over China’s increasingly dominant presence in South Asia and Indian Ocean has aligned with the US’s effort to curb China’s mushrooming global influence.
Namaste Trump in late February 2020 served as a reaffirmation of the United States as India’s primary security ally, strengthening the domestic political aspirations of both the leaders. It also acted as a deterrent from the Indian point of view given the hostility with not just China but Pakistan too.
The most apparent strategic convergence was substantiated with respect to countering the role of China in the Indo-Pacific region and cooperation has considerably risen in the field of defense and security, particularly under the governments of Donald Trump and Narendra Modi.
Defense and Security Cooperation on the Rise
The United States is India’s fourth largest source of weapons after Russia, Israel and France. India-US defense trade has profusely increased to over 20 billion dollars, key elements in this advancement includes the US recognizing India as a ‘Major Defense Partner’ in 2016.
In January 2020 Australia and the United States extended their geographical outreach to India Japan, which was heralded by an India-Japan-US trilateral and India-Japan-US-Australia quadrilateral dialogues and the first ever India-US tri service military exercise which commenced in 2019.
Trade Relations Between the Two Countries
In a neoliberal and globalized scenario, trade is one of the most important pillars a country’s economy and financial stability rests on.
Namaste Trump in late February 2020 served as a reaffirmation of the United States as India’s primary security ally, strengthening the domestic political aspirations of both the leaders. It also acted as a deterrent from the Indian point of view given the hostility with not just China but Pakistan too.
The most apparent strategic convergence was substantiated with respect to countering the role of China in the Indo-Pacific region and cooperation has considerably risen in the field of defense and security, particularly under the governments of Donald Trump and Narendra Modi.
Defense and Security Cooperation on the Rise
The United States is India’s fourth largest source of weapons after Russia, Israel and France. India-US defense trade has profusely increased to over 20 billion dollars, key elements in this advancement includes the US recognizing India as a ‘Major Defense Partner’ in 2016.
In January 2020 Australia and the United States extended their geographical outreach to India Japan, which was heralded by an India-Japan-US trilateral and India-Japan-US-Australia quadrilateral dialogues and the first ever India-US tri service military exercise which commenced in 2019.
Trade Relations Between the Two Countries
In a neoliberal and globalized scenario, trade is one of the most important pillars a country’s economy and financial stability rests on.
By ensuring a fair amount of exports that should ideally cross the level of imports in order to create a trade surplus or balance the government launches a domino effect stimulating several activities.
A high rate of export is an indication of high demand for domestic goods which in turn boosts production, improves rate of employment and launches a clear cut synergy between increased domestic spending and consumption. Such a chronology of events immensely benefits a country’s economy.
The two great democracies have not seen any significant trade collaborations over the past few years. There have been agreements on energy, defense, counterterrorism and geospatial cooperation. A comprehensive long term trade deal has been absent throughout the Indo-US strategic partnership.
Trade tensions between India and US have persisted due to a multitude of reasons ranging from India’s protectionism in the form of tariffs to Trump’s dedication towards bringing closure to trade deficits from the American side.
A high rate of export is an indication of high demand for domestic goods which in turn boosts production, improves rate of employment and launches a clear cut synergy between increased domestic spending and consumption. Such a chronology of events immensely benefits a country’s economy.
The two great democracies have not seen any significant trade collaborations over the past few years. There have been agreements on energy, defense, counterterrorism and geospatial cooperation. A comprehensive long term trade deal has been absent throughout the Indo-US strategic partnership.
Trade tensions between India and US have persisted due to a multitude of reasons ranging from India’s protectionism in the form of tariffs to Trump’s dedication towards bringing closure to trade deficits from the American side.
The US also ended India’s preferential status under the generalized system of preferences program. The two nations’ economic policies have valued short term transactions over and above long term economic fundamentals.
Alarmingly, India’s economy has contracted to a historic low of -23.9%. In such a situation economic growth and jobs for the country’s rapidly growing labor force should be the primary goals of the government.
Other Points of Irritants and Convergences
Convergences :
1. USA has been proactive in calling out Pakistan over terrorism. Information sharing and capacity building measures on terror activities have also been undertaken by India and USA jointly.
2. On soft issues like agriculture, education and health the relations are working really well. The two countries have signed 28 sectoral agreements for the same.
3. Almost 10 lakh Indian students go to the USA for higher education and there have been efforts to collaborate on research, vaccines etc.
4. The two nations have also come together to share and promote scientific temperament.
Irritants :
1. Disagreements over issues like climate change. India has displayed unending devotion towards building a sustainable growth model and being well below the emission limits. On the other hand, Trump has effectively withdrawn from the Paris accord citing it as a trivial and non-serious issue.
2. India has also opposed Trump’s hardline immigration policy which has affected a great number of Indians.
3. USA still views India with the highly detested NAM (Non-Alignment Movement) perspective which makes them maintain great levels of secrecy vis a vis the Indian administration.
4. China’s growth is envied by the USA but at the same time it shares excellent trade relations with China while expecting India to not engage with China in any significant way.
India and USA - the Way Forward
Other Points of Irritants and Convergences
Convergences :
1. USA has been proactive in calling out Pakistan over terrorism. Information sharing and capacity building measures on terror activities have also been undertaken by India and USA jointly.
2. On soft issues like agriculture, education and health the relations are working really well. The two countries have signed 28 sectoral agreements for the same.
3. Almost 10 lakh Indian students go to the USA for higher education and there have been efforts to collaborate on research, vaccines etc.
4. The two nations have also come together to share and promote scientific temperament.
Irritants :
1. Disagreements over issues like climate change. India has displayed unending devotion towards building a sustainable growth model and being well below the emission limits. On the other hand, Trump has effectively withdrawn from the Paris accord citing it as a trivial and non-serious issue.
2. India has also opposed Trump’s hardline immigration policy which has affected a great number of Indians.
3. USA still views India with the highly detested NAM (Non-Alignment Movement) perspective which makes them maintain great levels of secrecy vis a vis the Indian administration.
4. China’s growth is envied by the USA but at the same time it shares excellent trade relations with China while expecting India to not engage with China in any significant way.
India and USA - the Way Forward
The United States hasn’t backed off from portraying itself as the supreme hegemon. It has repeatedly tried to dictate terms to other countries. Some examples that can be mentioned are the sanctions imposed on Iran and the USA threatening India of dire consequences in case of failure to supply hydroxychloroquine.
With US elections approaching and a possibility of a change in regime, India along with the USA should look for more commonalities and ways to fulfill them with maximum attainment of privy interests and minimum sacrifice of core values and beliefs.
India, the largest democracy and the USA proudly holding the title of being the oldest democracy have more in common than what has been discovered so far. A long lasting and durable partnership sans a hegemonic attitude would have a tremendous potential and prove to be beneficial to both sides.
Written by - Isha Singh
Edited by - Sandhya R
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