India-US Bilateral Relations

What’s in today’s article?

• 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: Biden-Modi talks tomorrow
• Key agendas for Biden-Modi talks

Why in news?

• The United States has confirmed that President Joe Biden will hold a bilateral meeting with  Prime Minister Modi in New Delhi, ahead of the G20 Summit over the weekend.
• Also, the government is considering inviting leaders of the Quad grouping for the Republic Day celebrations next year.

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 US 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.
  • 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 other 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 “US-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.
• On commercial front, ISRO has launched more than 200 satellites from US, on-board Polar Satellite Launch Vehicle (PSLV), as co passengers.

News Summary: Biden-Modi talks tomorrow

• President Biden will attend the G20 Summit in New Delhi. Ahead of the summit, he will participate in a bilateral meeting with PM Modi.
  • The last US President to visit India was Donald Trump in February 2020.

Key agenda for Biden-Modi talks

• Both sides are working on an ambitious slew of deliverables for their bilateral engagement that includes:
  • a possible nuclear pact on small modular nuclear reactors,
    • Negotiations are going on between the Nuclear Power Corporation of India Limited (NPCIL) and Westinghouse Electric Company (WEC) for the construction of six nuclear reactors in India.
    • Now the discussion on developing next generation small modular reactor technologies is given priority.
    • These reactors are meant for domestic market as well as for export to third countries.
  • an academic programme tailored for Indian students,
    • The two sides are also working towards announcing academic programmes tailored for Indian students.
    • Under this, STEM courses will be offered for a year-long Master’s degree with a specialisation in a particular industry.
    • After the programme, the students will have the option of staying in the US for up to three years and work there.
  • movement on the drone deal,
    • India is planning to procure General Atomics MQ-9B HALE UAVs — highly powerful drones
  • progress on US Congress approval for a defence deal on jet engines,
    • The two sides are also working towards fast-tracking the GE jet engines deal.
    • A pact was signed between General Electric and Hindustan Aeronautics Limited for the manufacture of GE F-414 jet engines in India for the Hindustan Aeronautics Limited Light Combat Aircraft Mk 2.
    • Now US Congress has approved the deal.
  • a joint humanitarian aid for Ukraine,
    • Washington and New Delhi, which have differed on their criticism of the Russian invasion of Ukraine, are also considering sending in joint aid to Ukraine.
    • While Washington has so far sent in lethal weapons and India has only sent humanitarian aid, a joint humanitarian aid is being considered as a message to Moscow.
    • But the proposal is yet to be finalised.
  • a more liberal visa regime for Indians and new consulates in each other’s countries
    • The two sides had decided to launch a pilot to adjudicate domestic renewals of certain petition-based temporary work visas later this year.
    • A firm launch date is also expected to be finalised and announced during the US President’s visit.
    • The two sides will also start work on new US consulates in Bengaluru and Ahmedabad, and an Indian consulate in Seattle for later this year.

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 are small modular nuclear reactors?

Small Modular Reactors (SMRs) are a type of nuclear reactor design that is characterized by their smaller size and modular construction. These reactors are designed to generate electricity and, in some cases, heat for various applications. Unlike traditional large-scale nuclear power plants, which can have capacities of hundreds or even thousands of megawatts, SMRs are typically designed to produce between 1 and 300 megawatts of electricity. 

Source: Biden-Modi talks tomorrow, India looks to invite Quad leaders as Republic Day guests | Indian Embassy in US | Indian Express