India USA

3rd India-US 2+2 ministerial dialogue signed the landmark BECA Basic Exchange and Cooperation Agreement

Importance of 2+2 mechanism

highest-level institutional mechanism for a review of the security, defence and strategic partnership between India and the United States.
strategic matters of vital importance under the domain of both the external affairs as well as defence ministries, are comprehensively covered and any issue of jurisdiction and follow up is taken care of
challenges in relations between – on trade and on Kashmir – the delineation of strategic ties is set to be the biggest takeaway from this high-level engagement
moves away from the erstwhile approach of depending on the personal chemistry between political leaders

India-USA Relations

Indo-Pacific:India-U.S.-Japan trilateral summits (JAI), the India-U.S.-Australia-Japan Quadrilateral consultations
India’s role as a net provider of security in Indian Ocean Region and new partnership between USAID and India’s Development Partnership Administration for cooperation in third countries
Strategic Domain- India-U.S. Strategic and Commercial Dialogue in 2015 in Washington and the second in New Delhi in 2016.

Industrial Security Annex (ISA)- facilitate exchange of classified military information between Indian and the U.S. defense industries. enable US arms manufacturers to transfer sensitive technologies to entities beyond the Indian public sector, to even corresponding partners in the private sector.
sharing of information during crisis through secure defence related channels but also helps in Make in India program in key items through collaboration between private companies of both sides.
Defense Technology and Trade Initiative (DTTI) Standard Operating Procedure (SOP): processes for identification, development and execution of projects

Proposed Industry-to-Industry Framework under DTTI will establish a standing mechanism for dialogue and exchanges between the U.S. and Indian defence companies and their governments on defense technology and industrial cooperation

Defence Domain- Bilateral dialogue mechanisms Defence Policy Group (DPG), Defence Joint Working Group (DJWG), Defence Procurement and Production Group (DPPG), Senior Technology Security Group (STSG), Joint Technical Group (JTG) etc.
Counter-Terrorism- India-U.S. Joint Working Group on Counterterrorism
USA reaffirmed India’s status as a Major Defence Partner
Basic Exchange and Cooperation Agreement (BECA), LEMOA, COMCASA, GSOMIA
SEAHAWK & APACHE helicopters deals
new Counter-Narcotics Working Group between law enforcement agencies and decided to reinvigorate Homeland Security Dialogue.
Both sides called Pakistan to rein in cross-border terror threats and bring justice for the victims of 26/11 attack and the Pathankot terror attack of 2016
US second largest defence supplier to India. Since 2008, India has bought more than $18 billion worth of US military hardware
US supported designation of Jaish-e-Mohammed chief Masood Azhar as a global terrorist under UNSC Res 1267, and placing of Pakistan on the grey-list of the Financial Action Task Force

Water Agreement- to promote technical cooperation in water resources management and water technology
Donald Trump visited India becoming first US President to come to India on a stand-alone visit in the seven decades of Indo-US diplomatic ties
Namaste Trump’ event was organised on the lines of ‘Howdy, Modi!’ held in Houston last year.
India-US upgraded their relationship to ‘Comprehensive Global Strategic Partnership’.

Ministerial level Economic and Financial Partnership, Ministerial Trade Policy Forum, India-U.S. CEO's Forum, U.S.-India Infrastructure Collaboration Platform etc.
US International Development Finance Corporation announced $600 million financing facility for renewable energy projects in India.
US is India’s largest trading partner
Energy

India US Strategic Energy Partnership to enhance energy security, bolster strategic alignment etc
India importing crude and LNG from the US

Young Innovators Internship Programme (YIIP)- short-term internship opportunities in the U.S. for Indian students at post-secondary level or recent graduates

Coalition for Disaster Resilient Infrastructure (CDRI): United States commitment to be the founding member of the CDRI whose headquarters will be located in India.
Energy and Climate Change- U.S.-India Energy Dialogue, PACE (Partnership to Advance Clean Energy), Joint Clean Energy Research and Development Center (JCERDC), U.S.-India Partnership for Climate Resilience etc
US reaffirmed support for India’s permanent membership on a reformed U.N. Security Council and for India’s entry to the Nuclear Suppliers Group

Space- exchange of information in Space Situational Awareness (SSA), including space debris and space traffic management.
Science and Technology (S&T) Agreement
Indo-U.S. Science & Technology Joint Commission, India-U.S. Science & Technology Forum (IUSSTF), U.S.-India Science & Technology Endowment Fund etc.

A "monsoon desk" has been established at the U.S. National Centres for Environmental Prediction.
India's contribution towards Thirty-Meter Telescope Project in Hawaii and Indian Initiative in Gravitational Observations (IndiGO) with U.S. LIGO Laboratory

Frictions in India-US relationship

removed India from its list of developing countries
US terminated India’s designation as developing nation under Generalised System of Preferences (GSP)
Tariffs war: tariffs on steel and aluminium imports. India’s refusal to remove the 20% tariffs on ICT products.
differences in opinion on issues such as subsidies to farming sector, digital trade and IPR

With Afghan Peace deal, if U.S. leaves Afghanistan, it might strengthen Taliban and consequently Pakistan’s influence in Afghanistan.

CAATSA: Sanctions threat with India purchasing S 400 system from Russia and trade relations with Iran

Way Forward

Both countries have shared values of democracy, rule of law, human rights etc., and have convergence of strategic interests and have a vital role to play in strengthening global governance in trade, climate change, nuclear power etc.
Signing the trade deal at the earliest to root out major bilateral tensions
US needs to be more sensitive towards India’s reservations against US’s soft policy towards Pakistan and India needs to prepare itself for a larger security role in Afghanistan

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