India–United States relations
India, though being one of the founding members of the
Non-Aligned Movement, developed a closer relationship with the Soviet Unionthan with the US due to the nations' regional proximity, which setback Indo-American relations throughout the Cold War. However, after the collapse of the Soviet Union, relations between the two countries have warmed, especially under the current Bush Administration seeing India as a strategic partner in Asiaand the world's largest functioning democracy. [http://www.columbia.edu/cu/alliance/documents/Homepage/Paper-Jaffrelot.pdf] ] John McCainand Barack Obama, the nominees for the 2008 US presidential election, both have bright visions of the future of Indo-American relations, though with some differences. McCain appears to see India as a counterweight to China's ever-growing influence over the world; he would like to see India become a permanent member of the annual Group of 8 meetings and would warmly accept India's bid for a permanent seat on the UN security council. Alongside this a McCain presidency would develop closer strategic and military ties with India. Obama offers a different, though not opposing, relationship that would be marked by closer economic ties. [ [http://news.bbc.co.uk/1/hi/world/americas/7435993.stm BBC NEWS | World | Americas | South Asian view on US election ] ]
The historic relationship between India and the United states was very strong. One event is the visit of
Swami Vivekanandawho introduced Yogaand Vedantato America. Vivekananda was the first known Hindu Sage to come to the West, where he introduced Eastern thought at the World's Parliament of Religions, in connection with the World's Fair in Chicago, in 1893. Here, his first lecture, which started with this line "Sisters and Brothers of America," [http://jdk.phpkid.org/wp-content/Swami%20Vivekananda%20-%200001.mp3] made the audience clap for two minutes just to the address, for prior to this seminal speech, the audience was always used to this opening address: "Ladies and Gentlemen". It was this speech that catapulted him to fame by his wide audiences in Chicago and then later everywhere else in America, including far-flung places such as Memphis, Boston, San Francisco, New York, Los Angeles, and St. Louis.
After Indian independence until the end of the cold war, the relationship between the two nations has often been thorny. From 1961 to 1963 there was a promise to help set up a large steel mill in
Bokarothat was withdrawn by the U.S. The 1965 and 1971 Indo-Pakistani wars did not help their relations. During the Cold War, the US asked for Pakistan’s help because India was seen to lean towards the Soviet Union. Later, when India would not agree to support the anti-Soviet operation in Afghanistan, it was left with few allies. Not until 1997was there any effort to improve relations with the United States.
Atal Bihari Vajpayeebecame Indian Prime Minister, he authorized a nuclear weapons test in Pokhran, which got the immediate attention of the US. The Clinton administration and Vajpayee exchanged representatives to help build relations. In March 2000, President Bill Clintonvisited India. He had bilateral and economic discussions with Prime Minster Atal Bihari Vajpayee.Over the course of improved diplomatic relations with the Bush administration, India has agreed to allow close international monitoring of its nuclear weapons development while refusing to give up its current nuclear arsenal. India and the US have also greatly enhanced their economic ties.
9/11 terrorist attackson the U.S., President George W. Bushchose India as the country to control and police the Indian Oceansea-lanes from the Suez to Singapore. The tsunami that occurred in December 2004 saw the U.S. and Indian navies to work together in search and rescue operations and to reconstruct the damaged lives and land. An Open Skies Agreementwas made in April 2005. This helped enhance trade, tourism, and business by the increased number of flights. Air Indiapurchased 68 US Boeingaircraft, which cost $8 billion.
Former U.S. Secretary of Defense
Donald Rumsfeldand U.S. Secretary of State Condoleezza Ricehave made recent visits to India as well. After Hurricane Katrina, India donated $5 million to the American Red Crossand sent 2 plane loads of relief supplies and materials to help. And on 1 March 2006, President Bush made another diplomatic visit to expand relations between India and the United States.
The U.S.-India defense relationship derives from a common belief in freedom, democracy, and the rule of law, and seeks to advance shared security interests. These interests include maintaining security and stability, defeating terrorism and violent religious extremism, preventing the spread of weapons of mass destruction and associated materials, data, and technologies and protecting the free flow of commerce via land, air and sea lanes.
In recent years India has conducted joint military excercises with the U.S. in the Indian Ocean. Despite this the Indian government sees the sole U.S. base in the Indian Ocean,
Diego Garcia, and the permanent presence of the U.S. military there, as a potential escalation point in a future war, especially because of the current U.S. operations in Iraq and Afghanistan.
The United States is India's largest exporting market and second largest trading partner after China. India’s exports to the United States in
2003totalled nearly USD $13.1 billion, led by export of apparel and household goods, diamonds, and jewellery. American exports to India were valued at USD $5 billion. [ [http://www.indianembassy.org/indusrel/induspol.htm Embassy of India] ]
The United States is also one of India’s largest direct investors. From the year
1991to 2004, the stock of FDI inflow has increased from USD $11.3 million to $344.4 million, totaling $4.13 billion. This is a compound rate increase of 57.5% annually. Indian direct investments abroad were started in 1992. Indian corporations and registered partnership firms are allowed to invest in businesses up to 100% of their net worth. India’s largest outgoing investments are manufacturing, which account for 54.8% of the country’s foreign investments. The second largest are non-financial services (software development), which accounts for 35.4% of investments.
The United States is India's largest trading partner. In 2007, the United States exported $17.24 billion worth goods to India and imported $24.02 billion worth of Indian goods. [ [http://www.census.gov/foreign-trade/balance/c5330.html#2007 Foreign Trade Census] ] Major items exported by India to the U.S. include
Information TechnologyServices, textiles, machinery, ITeS, gemsand diamonds, chemicals, ironand steelproducts, coffee, tea, and other edible food products. Major American items imported by India include aircraft, fertilizers, computer hardware, scrap metaland medical equipment. [ [http://www.indianembassy.org/indusrel/trade.htm India - US Trade and Economic Relations ] ] [http://www.state.gov/r/pa/ei/bgn/3454.htm India (10/07) ] ]
The United States is also India's largest investment partner, with American direct investment of $9 billion accounting for 9% of total foreign investment into India. Americans have made notable foreign investment in India's power generation, telecommunications, ports, roads, petroleum exploration/processing, and mining industries.
July 2005, President George W. Bush and Indian Prime Minister Dr. Manmohan Singhcreated a new program called the Trade Policy Forum. It is run by a representative from each nation. The United States Trade Representative is Rob Portmanand the Indian Commerce Secretary is Minister of Commerce Kamal Nath. The goal of the program is to increase bilateral trade which is a two-way trade deal and the flow of investments.
There are five main sub-divisions of the Trade Policy Forum which include:
Agricultural Tradegroup- This group has three main objectives: agreeing on terms that will allow India to export mangoes to the United States, permitting India’s APEDA( Agricultural and Process Food Products Export Development Authority) to certify Indian products to the standards of the USDA, and executing regulation procedures for approving edible waxon fruit. Tariffand Non-Tariff Barriers group- Goals of the group include: agreeing that insecticides that are manufactures by United States companies can be sold throughout India. India had agreed to cut special regulations on trading carbonated drinks, many medicinal drugs, and lowering regulations on many imports that are not of agricultural nature. Both nations have agreed to discuss improved facets on the trade of Indian regulationrequirements, jewelry, computer parts, motorcycles, fertilizer, and those tariffs that affect the American process of exporting boric acid.
The two nations have discussed matters such as those who wish to break into the
accountingmarket, Indian companiesgaining licensesfor the telecommunicationsindustry, and setting polices by the interaction of companies from both countries regarding new policies related to Indian mediaand broadcasting. This group has strived to exchange valuable information on recognizing different professional services offered by the two countries, discussing the movement and positioning of people in developing industries and assigning jobs to those people, continuation of talks in how India’s citizens can gain access into the market for financial servicing, and discussing the limitation of equities.
The two countries have had talks about the restriction of investments in industries such as financial services, insurance, and retail. Also, to take advantage of any initiatives in joint investments such as agricultural processing and the transportation industries. Both countries have decided to promote small business initiatives in both countries by allowing trade between them.
The majority of exports from the United States to India include: aviation equipment, engineering materials and machinery, instruments used in optical and medical sectors, fertilizers, and stones and metals.
Below are the percentages of traded itemsIndia to US increased by 21.12% to $6.94 billion.
Diamonds& precious stones(25%)
Iron & Steel(5.81%)
Major items of export from U.S. to India:For the year 2006, figures are available up to the month of April. Merchandise exports from US to India increased by 20.09.26% to US $2.95 billion.Select major items with their percentage shares are given below
Engineering goods& machinery(including electrical) (31.2%)
Precious stones& metals(8.01%)
Optical instruments& equipment(7.33%)
Aviation& aircraft( 16.8%)
Embassy of India in Washington
Foreign relations of India
Foreign relations of the United States
United States-India Peaceful Atomic Energy Cooperation Act
* Blake, Jr., Robert O. "U.S.-India Relations: the Making of a Comprehensive Relationship." U.S. Embassy India. Army War College, Indore, India.
23 August 2004, 6 October 2006 .
* "India - U.S. Economics Relations." Embassy of India - Washington DC.
8 October 2006
* Kronstadt, K. A. India-U.S. Relations. Library of Congress. 2006. 17–19.
8 October 2006.
* Roy, Dr. P. C. Indo-U.S. Economic Relations. Rajouri Garden, New Delhi: Deep & Deep Publications, 1986. 73–125.
* [http://www.indianembassy.org/newsite/induspolAug06.asp Indian Embassy "India – U.S. Relations: A General Overview"]
* [http://www.state.gov/p/sca/rls/rm/22615.htm U.S. Department of state "The Future of US-India Relations"]
* [http://www.fas.usda.gov/itp/us-india.asp U.S. Department of Agriculture "U.S.–India Trade Relations"]
Wikimedia Foundation. 2010.
Look at other dictionaries:
India–United Kingdom relations — United Kingdom – India relations United Kingdom … Wikipedia
Colombia–United States relations — United States – Colombia relations Colombia … Wikipedia
Denmark–United States relations — United States Denmark relations Denmark … Wikipedia
Pakistan–United States relations — Pakistan United States relations Pakistan … Wikipedia
Kazakhstan–United States relations — Kazakhstan–American relations Kazakhstan … Wikipedia
Nepal–United States relations — Nepal – United States relations Nepal … Wikipedia
Maldives–United States relations — Maldives – United States relations Maldives … Wikipedia
Malaysia–United States relations — Malaysia – United States relations Malaysia … Wikipedia
Nigeria–United States relations — Nigeria – United States relations Nigeria … Wikipedia
Chile–United States relations — Chile – United States relations Chile … Wikipedia