Indo-US Relations: Retrospect
and Prospect
India’s foreign policy
has been guided by non-interference, non-alignment and non-aggression.
In the post-Cold War era, India and the United States have
learnt to deal with their differences with sensitivity, patience and
understanding as the recent developments suggest. The destinies of the
two great countries are interlinked and the strategic partnership
between them is likely to be one of the defining features of the 21st
century. However, it is often said that the interests of an emerging
power i.e. India and that of a hegemonic power i.e. US have remained
incompatible for a long time.
Throughout the Cold War, the
United States was accused by India of practicing double standards. While
the US condemned India for practicing human rights abuses, of pursuing
an unethical non-alignment and engaging in nuclear proliferation, none
of the same issues seemed to matter in America’s approach towards
Pakistan. Washington turned a blind eye as Pakistan developed a nuclear
weapon programme and proceeded to export its technology to North Korea,
Libya and Iran. The
objective of the two countries to advance regional security is impeded
by the continuation of US military aid to Pakistan. This is done
through presidential waivers to overcome the provisions of the
Kerry-Lugar legislation, which requires Pakistan to act responsibly
against terrorist groups on its soil before US aid can be released. Washington’s
current policy of equidistance with Pakistan still smacks of double
standards and does not inspire trust in India.
Ever since 9/11, both India and the US have embarked on security
cooperation like never before. The cooperation that began with the “war
against terror” has only grown, with divergent threats facing both the
countries. The US has recently hinted that it would provide an
exhortative ground for new security cooperation with India. While
in the past, the United States had virtually no defence ties with India,
the former today has overtaken
Russia as the largest arms supplier to India in the last few years. In
addition, India has the largest number of joint military exercises with
the United States today.
Today, India has not only joined the Missile Technology
Control Regime (MTCR), but is also likely to be accepted as a member of
the Nuclear Suppliers Group (NSG) with US backing. An
understanding between the two countries on national tracking and
liability issues has already removed political roadblocks in the way of
civilian nuclear cooperation. With India ratifying the Convention on Supplementary Compensation,
an international nuclear liability regime, the decks have been cleared
for supplying US nuclear reactors to India.
With rising security threats
posed by state and non-state actors, India needs strong strategic
partnership with the US to bolster its military capabilities. Border disputes
with two immediate neighbours –
China and Pakistan – combined with asymmetric security threats posed by
jihadist terrorism, the expansion of al Qaeda and the Islamic State
(IS) in the subcontinent, drive India’s push for a deeper strategic
partnership with the US. The recent India-US Logistic Exchange
Memorandum of Agreement (LEMOA) is a move in this direction. In the
post-withdrawal period in Kabul, a more intense New Delhi-Washington
cooperation will be required to preserve and secure the shared
long-term commitment to help build a secure, stable, and democratic
Afghanistan.
With regard to the strategic partnership with the US, it is
important to note that the strategic dimensions of the bilateral
relationship have moved from its politico-strategic attributes to
taking on economic-strategic ramifications. It will be more of a
challenge to India than to the US because in the effort to stick to
‘strategic autonomy’ and non-alignment, India tends to separate the
strategic from the economic, particularly in relation to China. India
has been rankled of late by the increasing Chinese presence in the
Asia-Pacific and the Indian Ocean. It is after long that India has
shown signs of building its own strategic deterrence against threats
from maritime aggression.
The shift in Washington’s policy
in India’s favour has much to do with its need to shift focus on other
regions – the Asia-Pacific and West Asia. The US views India as a
regional net security provider for at least two basic reasons: first,
it considers India as a responsible emerging power committed to
established international laws and norms. It also views India’s
democracy and political set-up as a model for the subcontinent in
addition to being a regional economic powerhouse. Second, Washington
seems to consider New Delhi as a potential ally for positive engagement
with Beijing with a mandate to keep the sea lines of communications
(SLOC) in the Indian Ocean free and safe for international trade and
navigation.
The development of the Andaman & Nicobar Islands Command
(ANC) as a strategic outpost is part of this strategy. There has not
been much strategic cooperation between the US and India in the
maritime domain, something which has been changing lately. Protection
of SLOC has been treated as a priority area of cooperation, especially
due to the rise of sea piracy and international terrorism. Greater
trade engagement with the countries of the region along with a vanguard
security role for the protection of trade through it should form the
economic priority. Indo-US ties are closer than ever as
America’s re-balance policy in the strategic Asia Pacific region is
complimenting India’s Act East policy.
Many US and Indian interests converge when it comes to the Indo-Pacific
corridor. Both have enormous trade passing through this area and both
are keen on seeing a rule-based maritime order and safe sea lanes for
trade. For this, the Indian Navy could work with the US Pacific Command
fleet in maritime patrol, search, rescue and surveillance in the
Indo-Pacific corridor.
Both India and the US can focus on the
security and safe passage of maritime trade that passes through this
area. Drawing from the South China Sea experience and the problems that
have arisen between China and its neighbours, India along with the US
could push for a universal ‘code of conduct’ for the Indo-Pacific area
and the larger Pacific Ocean.
A uniform international law in this area would serve the Indian
and the US interests to implement a coherent maritime security
paradigm. Both countries hold compatible views on a variety of issues
including maritime security, combating nuclear proliferation, and
expanding regional trade opportunities in the Indo-Pacific Economic
Corridor and beyond. This approach is backed by the realisation that
India has emerged as a dominant actor in the region and can be counted
as the only credible counter-balance to China. The 2015 US-India Joint Strategic Vision for the
Asia-Pacific and Indian Ocean Region specifically
addresses maritime territorial disputes involving China and, among
other things, affirmed the importance of safeguarding maritime security
and ensuring freedom of navigation throughout the region, especially in
South China Sea.
Both sides expect the larger bilateral relationship to hinge on
economic and commercial relations. Both India and the US have recently
pledged to deepen economic cooperation by setting a five-fold jump in
Indo-US trade to US$500 billion. In the wake of an increase in FDI in
the Indian defence sector up to 49 per cent, more US companies would be
interested to enter the Indian defence sector. The US through its ‘Silk
Road Strategy Act of 1999’ floated the concept of the ‘New Silk Route’
to make Afghanistan a transcontinental trade and transit hub by linking
it with the West and the Far East. The strong presence of India in
Afghanistan together with its domestic support can prove to be a
lynchpin for the US to realise its ‘New Silk Route’ dream.
When it comes to deepening
bilateral economic relations between the two countries, progress has
been mixed. The US businesses remain reluctant to invest in India
because of their beliefs that the Indian government has not yet
delivered on promises to ease doing business in India including
taxation issues, and implement general economic reforms in the country.
Nevertheless, the IT sector has brought the knowledge economies of
India and the United States closer and it constitutes the strongest
link Washington has with India. However, the United States is
unfortunately targeting this sector with higher visa costs and increased
restrictions.
Among other things, the
India-US collaborative economic agenda include co-production and
co-development of defence products under the ‘Make
in India’ programme, coal gasification technologies,
and the issuance of a non-FTA country waiver in order to
gain access to US fossil fuel reserves. The bilateral economic agenda
should also extend to partnerships in the area of agricultural
technology, the civil aviation, life sciences, infrastructure
financing, and green financing, among others. Bilateral dialogues
should also address visa issues in the IT/ITES (i.e.
outsourcing services) sectors, focus on exporting synergies in the biotech
and pharmaceutical sectors besides skill development exchanges.
Energy and climate change will remain important areas of
cooperation and contestation. Both are also working towards a solar
energy alternative to power telecom towers with clean energy. In
particular, Indo-US cooperation will focus on areas like the US-India
Energy Dialogue, US-India Climate Change Dialogue and the US-India
Civil Nuclear Energy. Despite the convergences, there are prominent
challenges that might prove to be potential obstacles that could derail
the bilateral relations. Protection of Intellectual Property Rights
(IPR) in India remains a concern with US pharma companies.
Against a strong US-China
trade relations, India too seeks stable and economically productive
ties with China. India has the difficult task ahead of managing the
China threat by both engaging closely with the United States and
reaching out to China. As part of closer India-US understandings in the
Indo-Pacific region, India and the United States have decided to
include Japan in the bilateral India-US Malabar naval exercises. The
trilateral India-US-Japan political dialogue has also been raised from
the official to Ministerial level. However, India’s problems with China
are principally related to ongoing border disputes arising from a
boundary disagreement and Beijing’s deepening relationship with
Islamabad. In both cases, India cannot count on the United State to
take a position supportive of India. This points to the limits of the
strategic partnership between the two countries.
US President Barack Obama’s
affirmation in 2010 that “the United States looks forward to a reformed
UN Security Council that includes India as a permanent member” has been
viewed as a major evolution in the US position. Yet, the United States
has not clearly defined its position on the expansion of the United
Nations Security Council, due to the fact that US openness to India’s hope
for permanent membership of the Council remains at a declaratory stage.
Like in any such relationship — especially between the world’s foremost
political, military, economic and technological power and a large
developing country advanced in certain sectors of the knowledge
economy, but beset with serious problems of poverty as well as at
unequal stages of development internally — differences are
normal. The challenge lies in mutual appreciation of each other’s
strategic constraints while getting over the same in the interest of
building a mutually beneficial relationship in the interest of a stable
global order.
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