9/3/12 Indo-US Relations

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IndoUSRelations
Introduction:
1. New Level of Maturity in IndoUS Ties: India's relations with the US have reached a new level of maturity where both
sidescanlivewiththeirdifferenceswithouttheirfundamentalfriendlygoodrelationsbeingaffectedadversely.IndoUS
relationshaveneverbeenbetter,withbilateralexchangesineveryarea,includingpeacefulusesofnuclearenergy.
2. BasicShiftinUSPolicytowardsIndia:
OfferforCooperationinCivilianNuclearTechnology:TheIndoUSCivilNuclearAgreementgivesIndiaaccess
tociviliannucleartechnologywhichwasdeniedtoIndiaforthreedecades.Analystspointoutthatthisgoeswell
beyondwhatwasbeingconsideredundertheNextStepsinStrategicPartnership(NSSP).
DefenceCooperationAgreement:The US has also offered a defence cooperation agreement with India that
includesjointproduction.AnalystspointoutthatsuchaprovisionisprovidedonlytoclosealliesoftheUSlike
SouthKoreaandTurkey.ThisisseenasunprecedentedinIndoUSties.
Institutional Means to Convert Aspects of NSSP into Tangible Projects: The US has also offered India the
institutional means to convert aspects of the NSSP, including economic cooperation and provision of space
technology,intotangibleprojects.
TheUSWantsIndiatoBecomeaGreatPower:TheUShasemphasisedtimeandagainthatitwantsIndiato
becomeagreatpowerandseesonthreatinIndiatakingsucharole.ThiswasconveyedtoIndia'sPrimeMinister
bytheUSSecretaryofState,CondoleezzaRice,duringhervisittoIndiainMarch2005.
3. ReasonsBehindtheUSDesiretoMakeIndiaaMajorPower:
Relations with India Need to go Beyond NSSP: The US has come to the conclusion that relations with India
shouldgobeyondtheNSSP.ThereforetheUSannouncedthatitwouldhelpIndiainitseffortstobecomeaworld
powerinthe21stcentury.
Recognition of India's Growing Power: Analysts feel that the US has developed a new respect for India as
growingpoweronaccountofitsnucleartests,itshigheconomicgrowth,itsachievementsintheITsectorandits
goodexportperformance.
Wants a Balance of Power in Favour of Freedom: Analysts point out that the US feels that the current world
order is not conducive to US security interests. Thus, the US wants a "balance of power in favour of freedom".
India fits into this equation perfectly. The US feels that India's partnership will be crucial in shaping the
internationalorderinthe21stcentury.
ChinaFactor:AnalystsopinethattheUSisnotcomfortableabouttheriseofChinaandisthereforeencouraging
Indiatomaintainthebalanceofpowerintheregionaswellasintheworld.
4. Broader IndoUS Strategic Relationship: IndoUS relationship is being transformed from a bilateral one to a strategic
partnership,accordingtothethenUSAmbassadortoIndia,DavidCMulford.TheUSisinfavourofadecisivelybroader
strategic relationship to help India achieve its goals as one of the world's great multiethnic democracies. The vision
embracescooperationonaglobalstrategyforpeace,defence,energy,andeconomicgrowth.
5. SharedCommonValuesandInterests:Mr.MulfordpointedoutthatIndoUSrelationshipisbasedonsharedcommon
valuesandinterests.Bothsidesworktogethercloselyincounteringterrorism,sharetheviewthatextremistgovernments
havenoplaceintheinternationalsystem,cooperateinfightingHIV/AIDS,andworktogethertobuildstrongereconomic
relations.
TheUSSecretaryofStateHillaryClintonsVisittoIndia(July1821,2009):
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1. FirstVisittoIndiaasSecretaryofState:TheUSSecretaryofStatevisitedIndiafromJuly1822,2009.Thiswasher
firstvisittoIndiaaftertakingchargeastheUSSecretaryofState.ShewasthehighestrankingmemberoftheObama
AdministrationtovisitIndia.
2. ThreeHiTechAgreementsFinalisedduringtheVisit:
a. EndUserMonitoringAgreement(EUMA):
Indiahasbeensigninganendusermonitoringagreements(EUMA)foralldualuseandhightechnology
purchasesfromtheUSsince1984.Allhightechdeals,militaryorcivilhadseparateEUMAclauses.
The current End User Monitoring Agreement (EUMA) finalised during US Secretary of State Hillary
Clintons visit is an umbrella agreement with the US to skip dealtodeal hassles. It is seen as the
harbingerofgreaterdefencecooperation.
AspertheagreedEUMAtext,theUScanphysicallyinspectdefenceequipmentandtechnologysoldto
India, but the time and place of verifications would be decided by India. This would avoid onsite
verification.
TheUSinsiststhatcountriesacquiringsensitivemilitarytechnologyfromitdohaveanenduserpact.
b. TechnologySafeguardsAgreement(TSA)AnEndUserAgreementinSpaceSector:ThenewTechnology
SafeguardsAgreementsignedbytheUSSecretaryofStateHillaryClintonandIndiasExternalAffairsMinister
S.M.KrishnawouldcoverlaunchesinvolvingsatellitesownedbytheUSgovernmentoracademicinstitutionsor
bythirdcountryspaceagenciesanduniversitieswhichhaveUSequipmentonboard.Sincethecomponentsand
satelliteswouldhavetobeintegratedwithISROslaunchvehiclestheTSAwouldprovideformonitoringbythe
UStoensureagainstdiversionormisuseofequipment.
c. ScienceandTechnologyCooperationAgreementwasalsosignedbyIndiasExternalAffairsMinisterandtheUS
SecretaryofState.
3. JointStatement:
a. DefenceCooperation:
The two sides reaffirmed their commitment to the early adoption of a UN Comprehensive Convention
againstInternationalTerrorism,whichwouldstrengthentheframeworkforglobalcooperation.
DefencecooperationenvisagedundertheDefenceCooperationFrameworkAgreementof2005wouldbe
prioritised.
Agreement to move ahead in the Conference on Disarmament towards a nondiscriminatory,
internationallyandeffectivelyverifiableFissileMaterialCutoffTreaty(FMCT).
A highlevel bilateral dialogue to close gaps on achieving global nuclear nonproliferation and
cooperationtopreventnuclearterrorism.
ConsultationsonnuclearfuelreprocessingarrangementsandprocedurestostartfromJuly21,2009.
b. NewArchitectureofStrategicDialogue:
DiscussionswouldtakeplaceonexchangingviewsonreformingtheUNSecurityCouncil,theG8andtheG20
so that these organisations and groupings reflect the world of the 21st century in order to maintain longterm
credibility,relevanceandeffectiveness.
c. EconomicsandTrade:
CommitmenttoOpenTradeandInvestmentPolicies:TheStatementnotedthatasG20members,India
and the US had pledged to work together with other major economies to foster a sustainable recovery
fromtheglobaleconomiccrisisthroughacommitmenttoopentradeandinvestmentpolicies.
BothSidescommittedtofacilitateapathwayforwardontheWTODohaRound.
Pledged to cooperate to preserve the economic synergies, to increase and diversify bilateral economic
relationsandexpandtradeandinvestmentflowsbetweenthetwocountries.
NegotiationsforaBilateralInvestmentTreatywouldbescheduledinNewDelhiinAugust2009.
Resolvedtoharnesstheingenuityandentrepreneurshipoftheprivatesectorsofbothcountrieswiththe
newlyconfiguredCEOForum.
d. Education:
Both sides affirmed the importance of expanding educational cooperation through exchanges and
institutionalcollaboration.
Agreedontheneedtoexpandtheroleoftheprivatesectorinachievingthis.
e. Science&Technology:
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e. Science&Technology:
The two sides concluded a Science and Technology Endowment Agreement and signed a Technology
SafeguardsAgreement(TSA).
Both sides welcomed Indias participation in the Future Gen Project for the construction of the first
commercialscalefullyintegratedcarboncaptureandsequestrationprojectandintheIntegratedOcean
Development Project, an international endeavour for enhancing the understanding of Earth and Ocean
dynamicsandaddressingthechallengesofclimatechange.
Agreedtoformworkinggroupstofocusonnewareasofcommoninterestnanotechnology,civilnuclear
technology,civilaviationandlicensingissuesindefence,strategicandcivilnucleartrade.
f. EnergyandClimateChange:
Bothsidestointensifycollaborationonenergysecurityandclimatechange.
Efforts to be made to increase energy efficiency, renewable energy, and clean energy technologies
throughtheIndiaUSEnergyDialogueandaGlobalClimateChangeDialogue.
BilateralS&TCollaborationtoSupportTransferofTechnologyinAreasofMutualInterest:Agreement
to launch a process of bilateral scientific and technological collaboration to support the development,
deploymentandtransferoftransformativeandinnovativetechnologyinareasofmutualinterest,including
solarandotherrenewableenergy,cleancoalandenergyefficiencyandotherrenewableareas.
CommitmenttoWorkTogetherforPositiveResultsintheUNFCCCConferenceonClimateChange:
Both countries affirmed their commitment to work together with other countries, including through Major
Economies Forum (MEF), for positive results in the UNFCCC conference on Climate Change in
CopenhageninDecember2009.
g. DeepeningIndoUSRelations:
a. Five Pillars of New Architecture of IndoUS Strategic Dialogue: The US Secretary of State Hillary
ClintonhighlightedfivepillarsthatwouldformpartofthenewarchitectureofstrategicdialoguewithIndia
asfollows:
StrategicCooperation
EnergyandClimateChange
EducationandDevelopment
TradeandAgriculture
Science&Technology
b. StrategicDialoguetobeTakenForwardbyFiveWorkingGroups:
StrategicCooperationWorkingGroupsaddressnonproliferation,counterterrorism,andmilitary
cooperation.
Energy and Climate Working Groups continue the energy dialogue and initiate discussions on
actiontoaddressclimatechange.
Education and Development Working Groups seek to enhance cooperation in education and
initiatediscussionsonwomensempowerment.
Economics,TradeandAgricultureWorkingGroupscontinuediscussionsonbusiness,tradeand
foodsecurity.
Science & Technology Working Groups explore new areas for cooperation in leading
technologies,andinaddressinghealthchallenges.
c. Agreement signed for creating $30million endowment to be used for joint research and development,
innovationandentrepreneurialandcommercialisationactivitiesinscienceandtechnology.
d. India pledged to designate two nuclear energy park sites in the country for development by US
companies.
e. India and the US intend to launch the third phase of their relationship by expanding the ambit of
dialoguetoincludeanannualmeetingbetweentheExternalAffairsMinisterandSecretaryofStateand
involvingnongovernmentalfiguresandorganisations.
f. IndiaUSStrategicDialoguetobelaunchedin2010wouldfocusonwiderangeofbilateral,global,and
regionalissues,continuingprogrammesnowbeingimplementedandtakingmutuallybeneficialinitiatives
thatcomplementIndianandUSdevelopment,securityandeconomicinterests.
g. US Does Not Oppose ENR Technology Transfer to India: The visiting US Secretary of State Hillary
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g. US Does Not Oppose ENR Technology Transfer to India: The visiting US Secretary of State Hillary
Clinton said that the recent G8 resolution on curbing transfer of nuclear enrichment reprocessing
technologydoesnotapplytoIndia.ShepointedoutthattheUShadjustcompletedacivilnucleardeal
with India. So if the ENR technology transfer is done within the appropriate channel and carefully
safeguarded,asitisinthecaseofIndia,thatsappropriate.
h. Prime Minister Manmohan Singh accepted US President Barack Obamas invitation to visit the US on
November24,2009.ThiswouldbethefirststatevisitunderthenewAdministration.
h. CriticismoftheEndUseMonitoringAgreement(EUMA)betweenIndiaandtheUS:
a. OppositionChargeIntrusiveInspectionsofSensitiveDefenceInstallationswouldCompromisethe
CountrysSovereignty:OnJuly21,2009,OppositionpartiesintheParliamentchargedthattheUSthe
GovernmenthadcompromisedIndiassovereigntybyallowingintrusiveinspectionsofsensitivedefence
installationsundertheEndUseMonitoringAgreement(EUMA)withtheUS.
b. Government No Question of Diluting Countrys Freedom, EUMA an Agreement between two
SovereignStatesRelatingtoHighEndDefencePurchases:TheExternalAffairsMinisterS.M.Krishna
madeidenticalstatementsinbothHousesoftheParliamentasfollows:
The EUMA systematises ad hoc arrangements for individual defence procurements from the US
enteredintobypreviousgovernments.
TheEUMAwouldhenceforthbereferredtoinlettersofacceptanceforIndianprocurementofUS
defencetechnologyandequipment.
There was no question of the Government diluting or bartering away the countrys freedom or
sovereignty,asitwasanagreementbetweentwosovereignStatesrelatingtohighenddefence
purchases.
Conclusion:
1. AgreementsSignedbetweenIndiaandtheUSduringtheVisitoftheUSSecretaryofStatetoIndiawould
haveaLongTermImpactonBilateralRelations:
AnalystspointoutthattheagreementsfinalisedandsignedbetweenIndiaandtheUSduringthevisitof
theUSSecretaryofStateHillaryClintontoIndiawouldhavealongtermimpactonbilateralrelations.
TheEUMAcouldbetheharbingerofgreaterdefencecooperationbetweenthetwocountriesasIndiacan
nowaccesscuttingedgeUStechnologyandtheUScompaniescanenterIndiasmarket.
The TSA in the field of noncommercial use of space was also very significant as it was an umbrella
agreementthatwaslikelytodispensetheindividuallicensingbytheStateDepartment.
Bothsidesagreedtoundertakemorecollaborativeprojectsindifferentfields,includingenergyandtrade
andagriculture.
Thequalityofimplementationoftheseagreementswouldbeunderscrutinyinbothcountriesasevident
fromtheprotestsfromtheOppositionintheParliament,accordingtoanalysts.
2. TheObamaAdministrationsResolvetoImplementtheIndoUSCivilNuclearAgreementinbothLetterand
SpiritisSignificant:TheUSSecretaryofStatereiteratedtheObamaAdministrationsresolvetoimplementthe
IndoUS nuclear deal both in letter and spirit. She emphasised that the US would not withhold transfer of
attendantreprocessingandenrichmenttechnology(ENR).ThiswassignificantastheimplementationoftheIndo
US nuclear deal would help India access worldclass nuclear power technology and boost up Indias energy
security.
3. Need for a Continuing Structured Bilateral Consultative Mechanism to Deal with Terrorism in the Region:
DefenceanalystspointoutthatiftheIndoUSpartnershipisnottobeinfluencedbytheUnitedStatesrelations
with Pakistan and if both are to have a mutually agreedupon strategy to face the common threat of terrorism,
thereneedstobecontinuingstructuredbilateralconsultativemechanismtodealwithterrorismintheregion.This
needstobeseparatefromtheannualStrategicDialogue.
4. India and the US have Common Interests in the Evolving Balance of Power in Asia: Former US Deputy
AssistantSecretaryofStateforSouthAsia,TeresitaSchaffersaidthatIndiaandtheUShadcommoninterestsin
theevolvingbalanceofpowerinAsiainenergysecurity,maritimesecurity,climatechangeandpeacefuland
harmonious rise of China. There was an opportunity for both countries to reshape the global nonproliferation
systeminthewakeoftheIndoUSCivilNuclearAgreement.
5. IssuesoverwhichIndiaandtheUSDiffer:
ClimatechangeIndiaisfirmonnotadoptingacaponemissionsbecauseitisnotasignificantpolluter
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andeconomicgrowthisitspriority.OntheotherhandtheUSwantsacommitmentfromIndiaonemission
cuts.
Outsourcing
NPT
CTBT
ApproachtowardsIran
6. IndoUSRelationsMoreSecureThanEverBefore:Analystspointoutthatdespiteafewirritants,theIndoUS
relationsseemmoresecurethantheyhaveeverbeen.Itispointedoutthatthereseemstobegreaterconnectivity
betweenthepoliticalleadershipwhichhasledtotheexpansionoftherelations.
7. IndiaShouldContinuetoFollowanIndependentForeignPolicy:Finally,analystsopinethatacloseworking
relationshipwiththeUSshouldbeapriorityinIndiasforeignpolicy.AtthesametimeIndiashouldcontinue
tofollowanindependentforeignpolicyretainingitsfreedomofoptionstoexercisemultifariouschoicesto
meetitsnationalinterests.
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