Prologue

This three article series deals with developments in Indo-US relationship during 201213, and outcome of 4th Strategic dialogue meeting between Kerry and Salman. (But
without going into deep details/analysis of Iran/Afghanistan issue, because theyre too
big topics to fit in the compilation.)
Part 1 of 3 Defense, nuclear, business and trade
Part 2 of 3 Health, education, science-tech, space collaboration
Part 3 of 3 Environment, energy + mock questions
First, the timeline of some landmarks/events in Indo-US relations. Click on following
image:

Timeline Indo-US (click to enlarge)

Why Kerry Visit?

Recently, US Secretary of State, John Kerry visited India. Why? Because he was in
Afghanistan and decided that abhi idhar tak aaya hu toh India bhi ho ke chalu, to enjoy
some free food and desi liquor. Nope. He came to India in June 2013, because earlier
both countries had agreed to hold Strategic Dialogue meetings every year.
2010 1st strategic dialogue held in US, between Krishna and Clinton
2012 3rd dialogue was held in Washington between Clinton and Krishna.
2013 This was 4th dialogue, held in India, between Kerry and Salman.
2014 5th Dialogue in USA

Hidden Agendas in 4th Dialogue

Country

America

India

Business

Iran

We want preferential access to Indian

market, to improve its own economy.

We want you (India) to be on our side in

the Iran nuclear issue.

Iran is a valuable friend for us.

But weve reduced our oil
imports from Iran. And asked
them to abide by the
nonproliferation requirements.

Youve nothing to worry about Afghanistan

because

Afghan

1. If at all, any peace deal is made,

itll be between the High Peace
Council of Afghanistan and the
good-talibans who disassociate
themselves from Al Qaeda and from
violence, and agreed to respect
Afghani constitution, rights of
women and the minorities.
2. Even after we leave, well still keep
a level of a force on the Afghani soil
for antiterrorism and
counterterrorism operations.

UNSC

Be on our side, and well fully

support your entry in four
multilateral export control regimes
(the Nuclear Suppliers Group,
Missile Technology Control Regime,
Australia Group, and Wassenaar
Arrangement).
Once you become members of

Ok well work
on BIPPA (Bilateral
Investment Protection
and Promotion
agreement).
But In return we want
you to further relax your
visa regime for our
skilled manpower.

You (Americans) are

planning to withdraw
troops from Afghanistan
from 2014.
Itll create a vacuum and
comeback of Talibans.
And it seems, youre
trying to make peace
with Good talibans.
Weve already invested
two billion dollars in
development and
projects in Afghanistan.
Re-entry of Talibans in
Afghani government =
not good. It puts our
national security at risk,
recall Kandahar episode.
well about time!
Besides weve worlds
third largest army, fourth
largest air force, fifth
largest navy and not to
mention Nuclear
weapons! We deserve a
permanent seat in

those gangs, youll have more legit

claim to be a permanent member of
UNSC.

And lets also do

some chillar agreements on
education, healthcare, sci-tech
cooperation, climate change etc. to
harass UPSC aspirants.

UNSC.

YES YES YES!! Totally agreed!

Nothing in this world can
match the sadistic pleasure of
harassing them.

Anyways, in June 2013, Kerry came to India for the strategic dialogue. As per the usual
diplomatic protocol: item songs, desi-liquor, sustainable livelihood.
Here are some of the important developments that took place in 2012-13 + during
4th dialogue.

Regional forums
India

United States has became a dialogue partner in Indian Ocean Rim Association
for Regional Cooperation (IOR-ARC). We welcome this development.

US

India got Observer status to the Arctic Council. We welcome this.India is a major

player in global scientific climate studies and has a research station in the Arctic.
Both

Well increase engagement in existing regional dialogue mechanisms e.g. East

Asia summit, ASEAN regional forum etc.
shared vision for peace and stability in Asia and in the Indian and Pacific Oceans
well intensify India-US engagement in the existing regional dialogue
mechanisms viz
a. East Asia Summit process,
b. Association of Southeast Asian Nations (ASEAN) Regional Forum
c. ASEAN Defense Ministers Meeting Plus
Well consult on issues relating to the region both bilaterally and trilaterally,
including in the India-US-Japan and India-US-Afghanistan.

In Afghanistan

We both want Stable, democratic, united, sovereign and prosperous Afghanistan.

Free, fair, transparent and inclusive Presidential and Provincial Council elections
in Afghanistan in 2014.
capacity building for Afghan National Security Forces.
socio-economic development, women empowerment in Afghanistan.
Promote private investment and trade, in Afghanistan.

In Iran

Kerry

President Obama had signed a law, empowering U.S. authorities to impose

penalties on foreign banks dealing with the Iran to settle oil import payments.
This created problem for India because Iran was 2nd largest supplier of oil after
Saudi.
Later in June 2012, Ex-Secretary of State Hilary Clinton gave 6-months
exemption to India.
But India had to reduce its oil imports from Iran, subsequently, Iraq became the
2nd largest supplier of oil to India.
Appreciated the fact that India has reduced its oil imports from Iran.

We have a valuable relationship with Iran, but we have not allowed our
friendship with Iran to come in the way of our objective commitment to
Salman nonproliferation and our commitment to the IAEA provisions because of Iran
being a signatory to the NPT.Iran has got a new President now (Hassan
Rohani), it remains to be seen what his intentions and inclinations are.

In Africa

Both are working for Open Government Platform (OGPL) in Africa.

OGPL aims to make Governments More Transparent and Accessible
ongoing trilateral cooperation in establishing Open Government Platforms in
Ghana and Rwanda.
Eliminating preventable child deaths.
strengthening agriculture management and extension services
Expand food security among important African partners such as Kenya, Liberia,
and Malawi.

Defense
The defense relationship encompasses military-to-military dialogues, exercises, defense
sales, professional military education exchanges, and practical cooperation.
Defense trade
Training exercises

~9 billion U$D.
1. Army = yudh abhyas

2. Navy=Malabar

Purchase

1. Navy= P-8I Poseidon

2. Airforce= C-17 Globemaster III

want to transform defense ties beyond buyer-seller relationships

want technological cooperation for co-development and co-production of defense
equipment.
missions to recover the remains of U.S. military personnel from World War II.

Security
1. training of law enforcement agencies, megacity policing, global supply chaintransportation security
2. Homeland Security Dialogue
3. combating counterfeit currency and illicit financial flows
4. 26/11 investigation and prosecution.
a. 2012: US put sanction on top leaders of LeT, many of them involved in
26/11.
b. Jan, 2013: Headley sentenced to 35 years prison. Although India has
demanded Hedleys extradition but no favorable response from US.
5. Cyber Security Consultations: between Indias Computers Emergency Response
Team (ICERT) and its American counterparts.
6. Issue: hate crimes against Sikhs (Oak Creek Gurudwara shootings). India asked
US government to give more security to Indian religious places inside America.
7. Both US and India opposed UN general assembly resolution for abolition of
death penalty.
Scomet

India has updated it SCOMET list, and USA has welcomed it.
SCOMET=Special Chemicals, Organisms, Materials, Equipment, and
Technology (SCOMET) list.
These items are capable of dual use industrial and military. If they fall in the
hands of terrorists, non-state actors or irresponsible states (like North Korea),
then they could create havoc. Some of the items are prohibited for exports and
others are allowed for exports subject to license and supervision.

Nuclear

US supports Indias full membership in following gangs:

1. Nuclear Suppliers Group (NSG)
2. Missile Technology Control Regime (MTCR)
3. Wassenaar Arrangement

4. Australia Group
Discussion between NPCIL and American cos. to setup nuke plants in Gujarat
and Andhra.
Talks between the U.S. Nuclear Regulatory Commission (NRC) and the Indian
Atomic Energy Regulatory Board (AERB) on a bilateral information exchange
arrangement.
Commitment to the full and timely implementation of the India-US civil nuclear
cooperation agreement.

2005 India-US signed civilian nuclear agreement.

2006 Hyde Act passed.
2007

India-US signed 123 agreement. It outlined the terms of nuclear trade between
two countries.

2008 IAEA and NSG gave permissions.

2010

Lok Sabha approves civil nuke liability bill.

India signs convention on Supplementary compensation for nuke
damages (CSC).

Business

Bilateral trade in goods and services: >$100 billion.

Total two way FDI: ~$30 billion.
We will resume negotiations for Bilateral Investment Treaty/Bilateral Investment
Promotion and Protection Agreement. This will be Facilitating greater two-way
trade and investment, including with respect to goods, services, and skilled
professionals.
We will increase engagement in multilateral fora such as the World Trade
Organization (WTO). (Although India and US have sharp differences over the
agro-subsidy issue in WTO.)

American
Business corners

this initiative targets Indias booming urban centersProviding Indian

entrepreneurs information about trade and investment opportunities
with the United States.To date, the U.S.A has opened 12 American
Business Corners in India from Chandigarh to Thiruvananthapuram
and from Surat to Guwahati.

Anti-Trust

To prevent monopolies and cartelism.MoU on Antitrust between

Ministry of Corporate Affairs, and Competition Commission of India
(CCI)) and their American counterparts.Under the MOU, all

agencies will inform each other on their policies and developments

in their jurisdictions.
Aviation

India U.S Aviation Cooperation Program (ACP)

BIT

Bilateral investment treaty (BIT) negotiations ongoing since

2008. last round held in June 2012.
This treaty would deepen the bilateral economic relationship
and support economic growth and job creation in both
countries

CEOs

India-U.S. CEO Forumenables a forthright conversation about

immediate policy issuesalso dwells into infrastructure financing,
aviation, clean drinking water, and renewable energy.

Commercial
Dialogue

For Intellectual Property Rights , sustainable manufacturing

practices, and support for small and medium enterprises, intelligent
transportation systems.

Economic and
Financial
Partnership
(EFP)

Since 2010, to deepen India U.S. engagement in core economic

policy areas.

Local
engagement

Meetings

PPP

State-to-State & City Engagement

Over the past year, economic ties at the state and city levels
have grown.
For example, Governors of Maryland and Washington led
trade missions to India.
Annual ministerial meetings led by the Indian Minister of
Finance and the U.S. Treasury Secretary,
They discuss infrastructure finance, anti-money laundering,
and combating the financing of terrorism.

PPP for technology-based innovation and entrepreneurship

Special 301:

Patent problems

It is an annual report of US authorities, regarding Intellectual

property rights, patent etc.
It criticized Indian SC ruling on Novartis patent.

Nexavar controversy:

Bayer Pharma has patented the Anti-cancer drug Nexavar

But Indian government allowed a Hyderabad based firm to

Trade policy
forum

manufacture generic version of this drug and sell it @30

times lower than patented drug.
US authorities have called this a violation of WTO norms.

enables India and the United States to engage on a wide range of

policy issues impacting bilateral trade and investment.

Summary
So, what is the big picture? Where do these individual pieces fit in the Indo-US
relationship? click on following chart to find out.
Mock questions, @the end of part 3 of 3.

Indo-US relationship 2012-13 (click to enlarge)

For more on diplomacy, international relations: visit Mrunal.org/diplomacy