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India-U.S. Relations Are Getting Stronger, According To The Takshashila Issue Brief

Next week, from June 21 to 24, Indian Prime Minister Narendra Modi will go to the United States for the first time. The timing of the visit is important in light of both India-US relations and the current global turmoil.

In areas including supply chain resilience, strategic and emerging technology, climate change, human capital, economic and trade linkages, and defence and intelligence, the strategic collaboration between the two countries has strengthened and expanded. Relationships in the Indo-Pacific area have been strengthened via interaction and common goals.

According to our analysis, the current international order is characterised by great power struggle between the United States and China in a multipolar globe. This started with the predictable U.S. move towards limiting China. Because of the current international order’s fluidity, middle powers like India have more negotiating leverage and discretion when negotiating with the United States.

India will have the chance to strengthen the current relationship and look into new possibilities for collaboration to further its strategic and economic goals during the impending state visit. In this Issue Brief, we present some of our research on the objectives India should seek and their attainment.

India must work to improve relations with the US

Several Indian leaders, analysts, and observers raise concerns over tighter relations with the U.S. despite the expansion of the India-U.S. alliance over the previous 20 years. Such arguments frequently fall short on the accuracy and persuasion tests.

We evaluated and refuted a number of prevalent arguments presented from both military and political perspectives in the Takshashila Discussion Document, Assessing Arguments Against Closer India-US Ties. and argued for deeper linkages in both technology and the economy between the nations.

For instance, it is sometimes suggested that a stronger relationship will prevent India from taking autonomous political views on issues of both national and international significance. India, however, has shown independence in its decisions about the circumstances underlying the Russia-Ukraine war. The closeness and interdependence of India-U.S. relations will also help Delhi bargain and extract concessions more effectively, even though some compromises in any good bilateral relationship may be required considering the wider convergence of interests.

Instead, we contend that India’s foreign policy decisions should be evaluated in light of its ability to help us achieve our economic and strategic objectives, free of extraneous ideological and emotional considerations. The significance of strengthening the cooperation is underscored by such analyses because current geopolitical trends favour closer alignment with the United States.

For instance, India-U.S. relations now are fundamentally supported by defence connections. In contrast to an assertive China, the United States views India as a regional security supplier in the Indo-Pacific and considers it as a significant defensive partner. India must strive to take advantage of the US Strategic Framework for the Indo-Pacific’s designation of India as a key counterweight to China in discussions over defence acquisitions from the US. A tech transfer agreement with the US, which has so far eluded the defence relationship, is also in India’s best interests.

Another area where India and the U.S. are prepared to work together more closely is space cooperation. The details of the defense-industrial collaboration were just settled. India has so far declined to sign the Artemis Accords and participate in the Artemis Programme. If India wants to influence the standards for space governance in the twenty-first century and take advantage of the multinational collaboration the Artemis programme offers, it must seriously consider participating.

Set a $1 trillion goal for bilateral trade by 2040

India’s economic development is the main reason for a greater strategic alliance with the U.S., along with ensuring national security. The goal of the relationship must consequently be to expand trade links with the United States.

India still ranks in the top ten trading partners of the United States, despite the United States becoming India’s largest trading partner. The Takshashila Policy Advisory, Time to Launch the US-India Trade Relationship into Another Orbit, proposes strategies to help the two nations reach their ambitious bilateral trade goals of $500 billion and $1 trillion by 2030 and 2040, respectively.

First, it is necessary to convert the current 2+2 dialogue between the defence and foreign ministries of both sides into a 3+3 discussion by involving the trade and commerce officials from both nations. Second, having the Trade Policy Forum annually will guarantee that lofty objectives are accomplished. Third, given the vast geography and federal structure of both nations, it is necessary to provide each state the authority to promote trade and economic cooperation by arranging annual reciprocal visits.

In the grand scheme of things, neither India nor the U.S. are parties to any significant regional trade agreements in which both countries are represented. India must not miss this chance to increase its trade while the disputes under the Indo-Pacific Economic Framework must be worked out.

Finally, networks and interactions between individuals continue to be the most important aspect of India-US ties. Prioritising reciprocal visa access, both parties must endeavour to establish a separate pool of visas specifically for Indian citizens.

Bharat Express English

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