About India-US Bilateral Relations
26-08-2023
12:30 PM
What’s in today’s article?
- Why in news?
- India-US Bilateral Relations
- Defence Cooperation between India and US
- Trade & Economic Relations between India and US
- Strategic Energy Partnership/ Climate & Clean Energy Agenda 2030
- S&T and Space Cooperation between India and US
- News Summary: US President Biden to host PM Modi for state visit
- Why this visit is significant?
Why in news?
- For the first time in nine years, Prime Minister Narendra Modi will travel to the US for an official state visit from June 21 to 24.
- This will be PM Modi’s first state visit to the US since he assumed office in 2014.
- His previous visits to the US to meet then Presidents Barack Obama and Donald Trump at the White House were not classified as state visits.
- The last official state visit by an Indian Prime Minister to the US was undertaken by then Prime Minister Manmohan Singh in November 2009.
India-US Bilateral Relations
Defence Cooperation between India and US
- India-US defence cooperation is based on “New Framework for India-US Defence Cooperation”, which was renewed for a period of ten years in 2015.
- In 2016, the defence relationship was designated as a Major Defence Partnership (MDP) to build a comprehensive, enduring and mutually beneficial defence partnership.
- In July 2018, India was moved into the Tier-1 of the US Department of Commerce’s Strategic Trade Authorization license exception.
- In August 2022, a U.S. Navy Ship (USNS) Charles Drew visited in Chennai for repairs and allied services. This was the first ever repair of a U.S. Navy ship in India.
- Several defence agreements have been signed:
- Logistics Exchange Memorandum of Association (2016);
- Communications Compatibility and Security Agreement (2018);
- Industrial Security Agreement (2019);
- Basic Exchange and Cooperation Agreement (2020).
- Bilateral exercises include: Yudh Abhyas (Army); Vajra Prahar (Special Forces), a tri-services exercise– Tiger Triumph (inaugurated in 2019).
- In November 2022, Australian Navy joined the U.S.-India-Japan MALABAR annual Naval Exercise. U.S. participated in India’s multilateral Exercise Milan 2022.
Trade & Economic Relations between India and US
- The U.S. has emerged as India's biggest trading partner in 2022-23 on account of increasing economic ties between the two countries.
- According to the provisional data of the Commerce Ministry, the bilateral trade between India and the U.S. has increased to $128.55 billion in 2022-23 as against $119.5 billion in 2021-22. It was $80.51 billion in 2020-21.
- Exports to the U.S. rose to $78.31 billion in 2022-23 as against $76.18 billion in 2021-22, while imports grew to $50.24 billion.
- In FY 2020-21, India received the highest ever FDI amounting to US$ 81.72 billion. USA became India’s second largest source of FDI during 2020-21 with inflows of US$ 13.82 billion.
- US is one of the top 5 investment destinations for Indian FDI.
- Indo-Pacific Economic Framework [IPEF]
- India joined the launch of the IPEF in May 2022 and will work with the 13 Partner countries to build an inclusive and flexible Indo-Pacific Economic Framework.
- India joined three Pillars of IPEF, related to supply chains, tax and anti-corruption and clean energy.
Strategic Energy Partnership/ Climate & Clean Energy Agenda 2030
- India and US have a strong bilateral partnership in energy sector.
- In April 2021, the US and India launched “U.S.-India Climate and Clean Energy Agenda 2030 Partnership,” with two tracks:
- Strategic Clean Energy Partnership (SCEP); and
- Climate Action and Finance Mobilization Dialogue (CAFMD).
- The SCEP has five pillars:
- Power & Energy Efficiency,
- Renewable Energy,
- Responsible Oil & Gas,
- Sustainable Growth, and
- Emerging Fuels and Technologies (hydrogen bio-fuels and waste to energy).
- USA joined the International Solar Alliance in November 2021 and ratified the ISA Agreement in September 2022.
S&T and Space Cooperation between India and US
- The Science and Technology Cooperation Agreement signed in October 2005, was renewed for 10 years in September 2019.
- ISRO and NASA are working together to realize a joint microwave remote sensing satellite for Earth observation, named NASA-ISRO Synthetic Aperture Radar (NISAR).
- ISRO availed NASA/JPL’s Deep Space Network Antenna support for its Chandrayaan-1, Mars Orbiter Mission (MOM) and Chandrayaan-2 mission. Both sides are currently exploring the possibility of availing similar support for Chandrayaan-3 satellite.
- On commercial front, ISRO has launched more than 200 satellites from US, on-board Polar Satellite Launch Vehicle (PSLV), as co passengers.
News Summary: US President Biden to host PM Modi for state visit
- The White House has announced the state visit by Prime Minister Narendra Modi to Washington DC next month.
- PM Modi is the third world leader to be invited for a state visit by Biden, following French President Emmanuel Macron in 2022 and South Korean President Yoon Suk Yeol in April 2023.
- The visit will underscore the growing importance of the strategic partnership between India and the United States as the two nations collaborate across numerous sectors.
Why this visit is significant?
- This visit is significant at a time when India has maintained a diplomatic tightrope walk on the Russia-Ukraine war.
- India has chosen not to take sides explicitly, either with the US-led West or the Russian side.
- China’s aggressive behaviour at the India-China border as well as the Indo-Pacific region has brought the two countries closer.
Q1) What is NASA-ISRO Synthetic Aperture Radar (NISAR)?
NASA-ISRO Synthetic Aperture Radar (NISAR) is a joint Earth observation satellite mission between the National Aeronautics and Space Administration (NASA) and the Indian Space Research Organisation (ISRO). The mission aims to provide high-resolution, dual-frequency radar images of the Earth's surface for a variety of applications, including land and resource management, disaster monitoring, and climate studies.
Q2) What is meant by State visit?
A State visit is a formal visit by a head of state or a senior representative of a country to another country, usually at the invitation of the host country's government. The purpose of a State visit is to strengthen diplomatic relations, promote trade and investment, and enhance cultural and political ties between the two countries.
Source: US President Biden to host PM Narendra Modi for state visit in June | Indian Embassy in USA | The Hindu