Indo-US Relations in the Contemporary Period (Nair)

Indo-­‐US Rela-ons in the Contemporary P
eriod :
E
conomic Indo-­‐US Rela-ons in the Contemporary and S: trategic Daimensions Period Economic nd Strategic -­‐Dr. Shaji Sadasivan Dimensions -­‐ N
air India at a Glance Largest func-onal Democracy in the World A de facto Nuclear Weapon State One of the fastest Growing Economies in the World Second largest populous country World ‘s largest pool of Scien-sts and Engineers aJer US •  Eighth largest industrial economy in the world •  One of the most ac-ve state in global peace building (second largest troupe contributor to UN Peace Keeping Opera-ons) • 
• 
• 
• 
• 
Evolu-on of India’s Ties with US :Major Phases •  Indo-­‐US -es before India’s Independence •  India-­‐US Ties since Independence -­‐Three Phases 1947-­‐1991 1991-­‐1997 1998-­‐ Till Present India’s Ties with US before India’s independence •  Period of limited contacts •  Roosevelt's support to India’s independence India’s Ties with US since Independence -­‐ Three Phases 1947-­‐1991 •  Phase of mixed outcomes -­‐ India’s emphasis on Non-­‐alignment -­‐ Differing views on economic systems -­‐ Cold War Dynamics 1991-­‐ 1997 (Structural Factors, DomesCc Factors, Personality Factors) •  Improved Rela-ons with US, •  de-­‐emphasis on India’s policy of non-­‐alignment, •  Restructuring of the economy 1998-­‐ Till Present •  India’s Nuclearisa-ons •  LiJing of Sanc-ons •  Indo-­‐US Civilian Nuclear Deal •  Emphasis on Defense Coopera-on and Trade Indo-­‐US Ties : A reflec-on of tangible rela-ons Major Areas of Coopera-on •  Ten year Defense Strategic Framework Agreement -­‐ Trade of Military Equipments/Hardware -­‐ Military Exercises •  Economic Factor -­‐  Expansion of Trade and Business •  Science and Technology Partnerships. Major Areas of Disagreements -­‐ Certain Economic Disputes -­‐  Nuclear and Missile Issues Indo-­‐US Nuclear Deal :Significance •  Paradigm shiJ in the US policy towards India •  Coopera-on in the field of Civilian Nuclear Technology aJer a gap of thirty years •  Manifold implica-ons for foreign and security policies of the country •  De facto acceptance of India as a nuclear power Indian Perspec-ve •  Acainment of Energy security •  Strategic Alliance •  Catalyst for Economic Coopera-on US Perspec-ve •  Enhancement in trade of Nuclear Reactors •  To ease tremendous pressure on interna-onal hydro-­‐carbon market Geo-­‐strategic factors Major strategic trends in Indo-­‐US rela-ons •  Common values and Geo-­‐strategic Interest -­‐ Indo-­‐US rela-ons -­‐ China Dimension -­‐ Indo-­‐US rela-ons -­‐ Pakistan Factor -­‐ Indo-­‐US rela-ons -­‐ Impact on Indian Ocean Major Economic Trends Indo-­‐US rela-ons •  US interest in expanding Indian market-­‐largest investment partner in India •  US interest in India’ service sector and its skilled human resources, ICT related areas •  India’s interest in US technology and finance Trade and Commerce in India’s Rela-ons with US • 
• 
• 
• 
Trade and commerce cons-tute the core of the rapidly expanding and mul--­‐
faceted rela-ons between India and U.S. The bilateral trade in merchandise goods has increased from a $ 5.6 billion in 1990, to $ 62.9 billion in 2012 ( growth of more than 1000 % ) Overall ,bilateral trade touched $100 billion in 2012. US has emerged as the largest contributor to Foreign Direct Investment in India Concluding Remarks •  India and United States entered into new era of coopera-on like never before in the Post-­‐Cold War period. •  Both India and United States redefined their -es with each other in the changed interna-onal context •  Such redefined -es reflected tangible commerce and trade in the realm of economy and enhanced defense coopera-on in the realm of strategy •  Indo-­‐US nuclear deal of 2005-­‐06 period is a major watershed in the rela-ons between two countries. •  Indo-­‐US -es are generally perceived to have long tem impacts in the regional and global architecture of economy and strategy while delivering posi-ve outcomes for both the countries, especially in the context of the shiJ of global balance of power from the Atlan-c to Asia –Pacific.