India Usa Relation 1
India Usa Relation 1
India Usa Relation 1
-INDIA RELATIONS
Introduction
What is INDUS-X?
INDUS-X stands for enhanced strategic and defence partnership
between India and the US.
It is aimed at deepening the partnership between the US and Indian
defence innovation sectors.
INDUS-X will focus on advancing high-tech cooperation and fostering
joint research, development, and production opportunities in the
defence sector.
The initiative aims to explore possibilities for co-producing jet
engines, long-range artillery, and infantry vehicles. Secretary Austin
highlighted the importance of this initiative and announced that its
formal launch would be undertaken during Prime Minister Modi’s
state visit to Washington.
With India and US coming together under the INDUS-X initiative,
India will be in a better position to achieve the $5 billion target in the
upcoming two years.
This will pave the way for US companies to invest massively in India
and build a defence ecosystem.
India has already undertaken such a defence partnership with Russia.
For instance, the BrahMos joint venture, which saw India and
Russia co-produce medium-range
Ramjet Supersonic BrahMos Cruise Missile that can be launched
from submarines, ships, airplanes or land.
The US support for the modernisation of India’s defence
industrial base — including joint production of the F414 fighter jet
engine in India and the supply of advanced armed drones — is part
of the effort to strengthen India’s military capabilities and thereby
enhance its deterrence against China.
Economic relationship
The United States seeks an expanded trade relationship with India that
is reciprocal and fair.
In 2022, overall U.S.-India bilateral trade in goods and services reached
$191 billion.
Bilateral trade is more consequential for India, for whom the United
States is a top trading partner, representing about 17% of India’s
exports and 7% of its imports
During Prime Minister's visit to the U.S. in September 2014, the two
sides set a target to increase bilateral trade in goods & services to
$500 billion
India and the US have set up a bilateral Investment Initiative in
2014, with a special focus on facilitating FDI, portfolio investment,
capital market development and financing of infrastructure.
American companies have invested at least $54 billion in India —
from manufacturing to telecommunications.
Indian companies have invested over $40 billion — in IT,
pharmaceuticals and more — supporting 4, 25,000 jobs from
California to Georgia.
This February, Air India announced the historic purchase of more
than 200 Boeing aircraft that will support an estimated one million-
plus jobs across 44 States
U.S.-India Infrastructure Collaboration Platform has also been set
up to deploy cutting edge U.S technologies to meet India’s
infrastructure needs
U.S. firms will be lead partners in developing Allahabad, Ajmer and
Vishakhapatnam as Smart Cities
There are several dialogue mechanisms to strengthen bilateral
engagement on economic and trade issues, including a Ministerial
level Economic and Financial Partnership (last met in
Washington D.C. in April 2016) and a Ministerial Trade Policy
Forum (last met in New Delhi in October 2016).
For greater involvement of private sector in discussion on issues
involving trade and investment, there is a bilateral India-U.S. CEO's
Forum.
India has joined three pillars of our new Indo-Pacific Economic
Framework — committing to build more resilient supply chains,
seize clean energy opportunities and combat corruption
ECONOMIC DISPUTES
Tariff policies.
Digital Trade
The DST is aimed at ensuring that non-resident, digital service
providers pay their fair share of tax on revenues generated in
the Indian digital market.
India’s 2% DST is levied on revenues generated from digital
services offered in India, including digital platform services,
digital content sales, and data-related services.
India was one of the first countries in the world to introduce
a 6% equalization levy in 2016 but the levy was restricted to
online advertisement services
Ustr argued it discriminates against US businesses and
contravenes settled principles of international tax law. Because it
excludes from its ambit domestic (Indian) digital businesses.
DIGITAL REGULATION
DATA LOCALISATION
Green card
L1 Visas
F-1 Visa-
International Cooperation
India and the US have often found themselves at odds at the United
Nations General Assembly.
According to one account, since the turn of the century, Australia and
Japan have voted with the US roughly 80 percent of the time on
significant UNGA votes; India, for its part, has voted with the US
only 20 percent of the time.
In recent years, however, the India–US strategic partnership has
evolved, expanding in scope from the bilateral to the multilateral and
embracing a wider range of issues that include: civilian nuclear
cooperation and nuclear non-proliferation; infrastructure
financing; the production and delivery of COVID-19 vaccines;
humanitarian aid and disaster relief; peacekeeping and
education; space and cyber security; countering terrorism and
extremism; governance of the oceans; and promoting a free and
open Indo-Pacific and the rules-based order
India and the United States cooperate closely at multilateral
organizations, including the United Nations, G-20, Association of
Southeast Asian Nations (ASEAN) Regional Forum, International
Monetary Fund, World Bank, and World Trade Organization.
The United States welcomes India joining the UN Security Council in
2021 for a two-year term, and supports a reformed UN Security
Council that includes India as a permanent member.
India is also a member of the Indian Ocean Rim Association (IORA),
at which the United States is a dialogue partner.
In 2019, the United States joined India’s Coalition for Disaster
Resilient Infrastructure to expand cooperation on sustainable
infrastructure in the Indo-Pacific region.
Energy relationship
The Indo-US nuclear deal holds significant importance to both India and
the U.S. The reasons are as follows:
Fissile material:
The best way to get access to the requisite fissile material for India
would be through uranium imports, which was not possible without
ending India’s nuclear isolation by US and the Nuclear Suppliers
Group (NSG).
Counter to China:
India can be a useful counter to China in Asia and the US does not
want to let go of this opportunity
Education:
The Higher Education Dialogue, which has had four meetings since
2011 (last in November 2014 in New Delhi), laid out the road map for
promoting strategic institutional partnerships, deepening
collaboration in research and development, fostering partnerships in
vocational education and focusing on junior faculty development..
Under the Global Initiative of Academic Networks (GIAN)
launched by India, up to 1000 American academics will be invited
and hosted each year to teach in Indian universities at their
convenience
Last year, Indian students enrolled at U.S. colleges and universities
contributed over $8 billion to the U.S. economy.
The total number of Indian students in the United States has more than
doubled over the last decade, from 81,000 in 2008 to a record high
of 202,000 in 2019.
Lauding the vibrant educational linkages between India and the United
States, the Ministers reiterated their support to further strengthen
cooperation in the field of education and skill development through
joint collaborations and promote student and scholar mobility to build
people-to-people linkages between the two countries.
In this regard, a new U.S.-India Education and Skills Development
Working Group has been established
The Ministers underlined the importance of continued engagement on
visa issues, welcomed the December 2021 meeting of the bilateral
Consular Dialogue, and resolved to continue efforts to facilitate the
reciprocal movement of professionals, businesspersons, skilled
workers, experts, and scientific personnel.
Both the countries also acknowledged the importance of continued
discussions on a Social Security Totalization Agreement and
welcomed the opportunity to further engage on pursuing such an
agreement.
Recognizing the importance of protecting cultural heritage, the
Ministers committed to work toward negotiating a Memorandum of
Understanding that will deepen cooperation in this area and assist
authorities in combatting the trade in cultural artifacts and
facilitating their repatriation.