Context: Recently Indian Prime Minister Narendra Modi visited the US and addressed US Congress for the second time. PM Modi's landmark visit to the US has been very successful with several substantive outcomes relating to semiconductors defence acquisitions, access to critical technology, the Artemis Accord for space cooperation and the resolution of six outstanding trade disputes. The cooperation in defence, space, and high-tech chip-making shows that Indo- US relations are deepening and widening.
Reasons for this deepening and widening of relations between the two countries
- The increasing market size of the Indian economy
- The growing influence of the Indian diaspora in American business and politics.
- The need of the hour to contain Chinese aggression.
Trade & Economic Relations
- The rapidly expanding trade and commercial linkages form an important component of the multi-faceted partnership between India and the United States. The U.S. is India’s second-largest trading partner and a major destination for our exports of goods and services. Bilateral trade in goods and services stood at US$ 146 billion in 2019. There are several bilateral dialogue mechanisms in place to discuss issues of mutual interest. These include:
- India-U.S. Trade Policy Forum: Established in 2005, the Trade Policy Forum serves as the leading bilateral mechanism to discuss trade-related matters.
- India-U.S. Commercial Dialogue: India-U.S. Commercial Dialogue focuses on cooperation in areas such as standards, ease of doing business, travel & tourism, and other important issues of commercial significance.
- India-U.S. CEO Forum: The India-U.S. CEO Forum was established in 2005. The Forum meets on the sidelines of the India-U.S. Commercial Dialogue.
- Information and Communications Technology: A Joint Working Group on ICT was established in 2005 to bring together government and industry to discuss cooperation in the electronics & IT sector.
- India – U.S. Economic and Financial Partnership Dialogue (EFP): India – U.S. Economic and Financial Partnership Dialogue is led by the Finance Minister of India and the U.S. Secretary of the Treasury.
Defence Cooperation
- India-US defence cooperation is based on the “New Framework for India-US Defence Cooperation”, which was renewed for ten years in 2015.
- In 2016 the defence relationship was designated as a Major Defence Partnership (MDP). The MDP recognizes a shared desire to build a comprehensive, enduring and mutually beneficial defence partnership.
- On 30 July 2018, India was moved into the Tier-1 of the US Department of Commerce’s Strategic Trade Authorization license exception.
- The Defense Policy Group (DPG) headed by the Defense Secretary and Under Secretary of Defense (Policy) provides a platform for a comprehensive review of the defense dialogues/mechanisms. The last DPG was held in Washington D.C. in August 2019.
- The 10th Defense Trade and Technology Initiative (DTTI) meeting co-chaired by the Secretary (Defense Production) and Under Secretary of Defense (Acquisition and Sustainment) was held virtually on 15 September 2020.
- Separately, the DTTI Industry Collaboration Forum (DICF) and the DTTI Inter-Agency Task Force (DIATF) met virtually in 2020.
- The 4th Maritime Security Dialogue (MSD) was held in August 2019.
- The other mechanisms include the Military Cooperation Group, the three Executive Steering Groups (ESGs) for military-to-military cooperation, the Joint Technology Group and the Senior Technology Security Group (STSG).
- Defence procurements from the US have been an area of steady growth in the last decade. India has procured defence items of around US$ 21 billion from the US since 2008.
- The defence procurement activities are monitored through the Defense Production and Procurement Group; the last meeting took place in August 2019.
- Several defence agreements have been signed in recent years. These include
- the Logistics Exchange Memorandum of Association (August 2016);
- the Memorandum of Intent between the U.S. Defense Innovation Unit (DIU) and the
- Indian Defense Innovation Organization – Innovation for Defense Excellence (2018); Communications Compatibility and Security Agreement (September 2018);
- Industrial Security Agreement (December 2019);
- Basic Exchange and Cooperation Agreement (October 2020).
- Bilateral military exercises and defense exchanges are important aspects of deepening military-to-military cooperation.
- The two countries now conduct more bilateral exercises with each other than they do with any other country. In addition to several service-to-service exercises,
- A tri-services exercise– Tiger Triumph- was conducted in November 2019
- Bilateral and regional exercises include Yudh Abhyas (Army)
- Vajra Prahar (Special Forces)
- RIMPAC
- Red Flag
- In November 2020, Royal Australian Navy joined the U.S.-India-Japan MALABAR Naval Exercise held in the Bay of Bengal and the Arabian Sea
- Both sides have conducted several PASSEX with the US carrier groups in the Indian Ocean Region
QUAD
- The four Quad partners (India, Japan, United States & Australia) first formed a “Core Group” in 2004, to swiftly mobilize aid during the joint response to the 2004 Tsunami. Since 2017, Quad engagements have increased and intensified.
Counter Terrorism Cooperation
- Cooperation in counter-terrorism has seen considerable progress with information exchange, operational cooperation and sharing of counter-terrorism technology and equipment. India-U.S. Joint Working Group on Counter-Terrorism oversees the expanding CT cooperation.
Security Cooperation
- The Homeland Security Dialogue at the Home Minister/Homeland Secretary level began in May 2011. It has six Joint Working Groups on megacity policing, a global supply chain of transnational crime, countering illicit financing and counterfeiting, cyber security, capacity building and application of S&T in homeland/internal security.
Counter-Narcotics Cooperation
- Both countries set up the Counter-Narcotics Working Group which met for the first time virtually on 24 November 2020.
Cyber Security Cooperation
- The India-US Cyber Framework signed in September 2016, provides for expanding cooperation in the cyber domain.
Education Cooperation
- The United States Educational Foundation in India (USEFI) was set up after a bilateral agreement on education exchange was signed between India and the US on February 2, 1950. In July 2008, India and the US signed a new deal, whereby India and the US committed to fund the Fulbright Program as equal partners.
- India-U.S. Higher Education Dialogue, launched in 2012, laid out a road map for promoting strategic institutional partnerships, deepening collaboration in research and development, fostering partnerships in vocational education and focusing on junior faculty development.
Health Cooperation
- There has been a longstanding collaboration between India and US in the health sector. Scientists from both countries have been working together in several programs to understand important diseases at the basic and clinical levels. Many such programs have been focused on translational research to develop new therapeutics and diagnostics. The collaboration under Vaccine Action Program (VAP) resulted in the development of the ROTAVAC® vaccine against the rotavirus causing severe diarrhoea in children.
Diaspora/People-to-People ties
- About 4.2 million Indian American/Indian origin people reside in the US. The Indian Americans [3.18 million] constitute the third largest Asian ethnic group in the US.
Bilateral Dialogue Mechanisms
- Despite the COVID-19 pandemic, India-U.S. cooperation witnessed intense engagement under various bilateral dialogue mechanisms in a wide range of areas including defence, security, health, trade, economics, science & technology, energy and people-to-people ties.
- India-U.S. 2+2 Ministerial Dialogue, led by the heads of Foreign and Defense Ministries of India and the U.S., reviews the bilateral ties in defence, strategic and security domains as well as important regional and global issues.
Parliamentary Exchanges
- There have been regular parliamentary exchanges to strengthen ties of friendship and cooperation. In 2019 and early 2020, several Congressional delegations visited India.










