26 June 2023 in Thoughts and Talks, The Bookish Gossips

NEW DELHI’S AND WASHINGTON’S PARTNERSHIP

NEW DELHI’S AND WASHINGTON’S PARTNERSHIP

NEW DELHI’S AND WASHINGTON’S PARTNERSHIP: INTRODUCTION

In 2008, the US-India relationship became even stronger through a civil nuclear deal. Since then, they have been described as strategic partners. However, what exactly does it mean to be a strategic partner? Let’s delve deeper into the true meaning of this significant alliance. The upcoming state visit of Prime Minister Modi to Washington provides a unique opportunity to assess the robust partnership between India and the United States. This partnership is not just a mere transactional relationship but rather a strong alliance that has only grown stronger over time. It’s the perfect moment to take stock of this extraordinary partnership that occupies an unprecedented middle ground in international politics, benefiting both nations.

Advantage of this partnership

Strategic partnerships are a crucial aspect of modern business, enabling high levels of collaboration and information sharing. Such alliances embody multifaceted dimensions of cooperation, garner broad-based political support, and create stability in an increasingly volatile market. By forming these strategic partnerships, businesses can achieve new heights and thrive amidst a rapidly changing landscape.

The US-India relationship ticks off all the right boxes, with rising levels of arms sales, defence technology transfers, and military-to-military cooperation. New Delhi is also benefiting from important intelligence assistance from the United States in keeping a close watch on threats along its northern borders. The portfolio of collaborations between the two countries has been rapidly diversifying, encompassing various sectors like technology, space, clean energy and higher education. Not only does this partnership enjoy multi partisan support from both sides, but it has also remained resilient in the face of challenges for several years now. Such sustained progress is a testament to the strength of this invaluable collaboration.

Security alliance

Naysayers may claim that the US-India security alliance has its limits, pointing to India’s reluctance to become a formal ally. However, in reality, there is no pressure from Washington for India to do so. The partnership has already taken on many characteristics of an alliance, making it a highly effective and valuable collaboration. The US and India have solidified their relationship by signing crucial defence agreements that are in line with the ones signed with other key American allies. The Major Defense Partner designation bestowed upon India has also opened up an avenue for unrestricted access to cutting-edge military and dual-use technologies, further strengthening their partnership.

Upcoming US’s consulates

Exciting news for India-US relations – a senior White House official confirmed on Thursday that the US will be establishing consulates in both Bengaluru and Ahmedabad. This move is set to strengthen people-to-people ties between the two nations, fostering greater cooperation and collaboration in various spheres. Great news! The much-awaited plan for establishing an Indian consulate in Seattle, located in the Pacific Northwest region, is finally nearing fruition as per official sources. This will undoubtedly strengthen bilateral ties and benefit the Indian community in the region.

Investments of US

India has been fortunate to receive significant investment from the United States. In fact, the US is one of India’s largest direct investors. The FDI inflow between 1991 and 2004 experienced an impressive surge from just US$11 million to $344.4 million, ultimately reaching a total of $4.13 billion. This is a testament to the strong economic relationship between these two countries and bodes well for future growth and development initiatives.

Indian companies have been investing overseas since 1992, and the trend has only increased with time – a staggering 57.5% annually in compound rate increase Indian corporations and registered partnership firms are now allowed to invest up to 100% of their net worth in businesses abroad, providing them with greater opportunities for expansion and growth. India’s investment portfolio is testament to the country’s forward-thinking approach, with manufacturing being the topmost sector for foreign investments at 54.8%.

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Non-financial services, specifically software development, follow closely behind accounting for over a third of all investments at 35.4%. It’s clear that India is taking strategic steps to establish itself as a global leader in key industries. As per the commerce ministry’s latest report, the two countries have seen a remarkable boost in bilateral trade, exceeding $119.42 billion in the fiscal year 2021-22. Notably, exports from India to the US increased dramatically from $51.62 billion in the previous year to an impressive $76.11 billion this year, while imports surged to $43.31 billion. Such significant growth highlights a promising future for trade relations between these nations and signifies new opportunities for business expansion and innovation on both sides of the border.




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