US-India Review Bilateral Ties

Syllabus: GS2/IR

Context

• Prime Minister Modi and the US President agreed to maintain close engagement to advance the India-US strategic partnership.

About

• Both leaders held their first phone conversation since the US signed the law that has granted powers to impose 100% tariffs on India, China, and other countries for importing Russian energy.
• The two leaders reviewed progress in bilateral cooperation across trade, defence, energy, critical technologies and other areas of mutual interest.

Overview of India and US Bilateral Relations

• Since India’s independence, ties with the United States have weathered the Cold War era distrust and estrangement over India’s nuclear program. 
  • Relations have warmed in recent years, and cooperation has strengthened across a range of economic and political areas.
• Bilateral Trade: The new goal for bilateral trade, “Mission 500” is aiming to more than double total bilateral trade to $500 billion by 2030. 
  • The US was India’s largest trading partner in 2025-26, with bilateral merchandise trade worth $132.2 billion, comprising exports of $86.51 billion and imports of $45.62 billion.
  • Currently, China is the largest trading partner, followed by the USA.
• Defense and Security: At the apex of dialogue mechanisms is the 2+2 Ministerial Dialogue co-chaired by the Minister of External Affairs and Minister of Defence and their US counterparts.
  • India and the US have signed a troika of “foundational pacts” for deep military cooperation, beginning with the Logistics Exchange Memorandum of Agreement (LEMOA) in 2016, followed by the Communications Compatibility and Security Agreement (COMCASA) after the first 2+2 dialogue in 2018, and then the Basic Exchange and Cooperation Agreement (BECA) in 2020.
  • In 2016, the United States elevated India to a major defense partner.
• Military Exercises: Yudh Abhyas (Army), Vajra Prahar (Special Forces), Malabar (Navy), Cope India (Air Force), and Tiger Triumph (tri-services).
  • Red Flag, RIMPAC, CUTLASS Express, Sea Dragon, Milan are some of the Multilateral Exercises in which the two countries participate. 
• Space: The Artemis Accords signed by India established a common vision for the future of space exploration for the benefit of all humankind.
  • NISAR (NASA ISRO Synthetic Aperture Radar) – the joint microwave imaging satellite by ISRO & NASA was launched in 2025 from Satish Dhawan Space Centre. 
  • ISRO and NASA collaborated for a Strategic framework for cooperation in human spaceflight in 2024. 
  • After the training, ISRO nominated Gaganyaatri Shubhanshu Shukla to take part as a Pilot in the joint ISRO-NASA mission (Axiom-4) to ISS.
• Multilateral Cooperation: India and the United States cooperate closely in multilateral organizations and forums, including the United Nations, G20,, International Monetary Fund, World Bank, and World Trade Organization.
  • Together with Australia and Japan, the United States and India convene as the Quad, a diplomatic network, to promote a free and open Indo-Pacific.
• Nuclear Cooperation: Civil Nuclear Deal was signed in 2005, under the agreement, India agreed to separate its civil and military nuclear facilities and place all its civil resources under International Atomic Energy Agency (IAEA) safeguards.
  • In exchange, the United States agrees to work toward full civil nuclear cooperation with India. 
• New initiatives: Several new initiatives have been announced like GE-HAL deal to manufacture jet engines in India and the initiative on Critical and Emerging Technology (iCET).
• Diaspora: About 5.4 million Indian Americans/Indian origin people reside in the US. Persons of Indian origin constitute the third largest Asian ethnic group in the US. 

Areas of Concern

• Trade and Economic Disputes: Differences over tariffs and market access, particularly in agriculture, dairy products, medical devices, and digital services.
  • The United States has criticised India’s protectionist policies and high import duties on certain products.
• India’s Strategic Autonomy and Russia Relations: India’s long-standing strategic partnership with Russia remains a major concern for the United States.
  • India’s purchase of the S-400 air defence system from Russia created concerns under the US CAATSA (Countering America’s Adversaries Through Sanctions Act).
  • The US expects stronger alignment against Russia, whereas India maintains a policy of strategic autonomy and multi-alignment.
• Divergence on Global Geopolitical Issues: India has often adopted a neutral or balanced position on conflicts such as the Russia–Ukraine war.
  • Differences occasionally arise regarding West Asia policies, Iran sanctions, and energy security.
  • India prioritises strategic autonomy, whereas the US often expects coalition-based alignment.
• Immigration and Visa Restrictions: Tightening of H-1B visa norms affects Indian IT professionals.
  • Delays in visa processing impact students, workers, and businesses.
  • Uncertainty in US immigration policies creates concerns for the Indian diaspora and technology sector.
• Defence Technology Transfer Limitations: Restrictions on transfer of advanced military technologies. Concerns in India regarding reliability of long-term defence supplies during geopolitical crises.
• Concerns Regarding Pakistan and Regional Security: Although US–Pakistan ties have weakened compared to the Cold War period, India still remains cautious about US military assistance to Pakistan.
• Unpredictability in US Foreign Policy: Frequent shifts in US foreign policy such as changes in trade policies, withdrawal from international agreements and sanctions-related pressures create uncertainty for India.

Conclusion

• India–US relations are marked by both strong convergence and persistent differences. 
• While the partnership has deepened significantly in defence, technology, trade, and Indo-Pacific cooperation, challenges remain rooted in differing strategic priorities, economic interests, and geopolitical approaches. 
• Effective management of these differences through sustained dialogue, institutional cooperation, and mutual respect for strategic concerns will be essential for ensuring long-term stability and growth in bilateral ties.

Source: TH