Why in News?

• The United States announced its ambassador to India in March 2023, after a gap of two years.
• There will be greater engagement between India and the U.S. in forums like G20, I2U2, and Quad.
• Moreover, Indian Prime Minister Narendra Modi will visit the U.S. in June 2023 and American President Joe Biden will visit India in November 2023.

Strong Areas of Cooperation between India and the U.S.:

• The India-U.S. Initiative on Critical and Emerging Technology (introduced in 2022) has the potential to expand strategic technology partnerships and defence industrial cooperation between the two countries.
• The U.S.-India Strategic Energy Partnership was introduced in 2020 to enhance cooperation in the fields of energy security, energy access, and climate change.
• The Indo-Pacific partnership intends to enhance security and economic growth, promote trade and investment, and ensure connectivity in the region.
• It is based on the concept of free, open, and inclusive Indo-Pacific region including the sovereignty and territorial integrity of all countries.
• One of the major objectives is to counter China’s growing influence in the region.
• It involves a range of initiatives like information sharing, joint military exercises, etc. They also cooperate in the field of cybersecurity, maritime security, and counter-terrorism.
• India and the U.S. also share concerns about China’s growing assertiveness in the South China Sea, and its efforts to establish economic dominance through the Belt and Road Initiative (BRI).
• India’s expanding consumer market makes it an attractive destination for U.S. businesses.
• There is a growing demand for diversifying supply chains due to geopolitical tensions.

Successful Initiatives of India-U.S. Ties:

• Some of the key moments of the relationship between the two are the nuclear deal, the liberalization of markets, and the U.S.-aided Green Revolution.
• The U.S. also played a role in making India an IT superpower.
• In the area of combating climate change, both countries have cooperated for renewable energy, and joint research and development.
• Additionally, India and the U.S. have worked together on space technology.

Areas of Concern:

• The U.S. is demanding India change its stance on the Ukraine crisis, whereas India is seeking stronger action from the U.S. against China.
• India is looking forward to better relations with the U.S. However, it is also reluctant to sever its ties with Russia.Moreover, India is a president (till September 2023) of the Shanghai Cooperation Organization, which includes China and Russia as its members.
• Russia in its new foreign policy strategy has identified India and China as its major allies.
• Realigning U.S. supply chains to India has multiple challenges. For instance,
• India does not have a developed infrastructure, logistics, and regulatory systems like China.The legal and bureaucratic system in India is complex.

Conclusion:

• Despite the deepening relations between the U.S. and India, there are areas where both countries diverge and face trust issues.
• The governments of both countries should take steps to promote closer economic ties and facilitate investment.