India-US Relations: From Estranged to Engaged

INDIA-US: FROM ESTRANGED TO ENGAGED TO RESTRAINED DEMOCRACIES

Why in the News?

• The weaponisation of trade, finance and energy flows by the US, with its allies playing second fiddle, has deeply hurt Indian economic interests, impacting India’s economic rise and, as a consequence, its national security and global standing.
• India-US relations have evolved from “estranged democracies” during the Cold War to “engaged democracies” after the 2005 Civil Nuclear Agreement, and are now entering a phase of “restrained democracies” marked by growing transactionalism, affecting not just strategic cooperation but also environmental democracy and regulatory frameworks.
• It contends that President Donald Trump’s approach has shifted the India-US relationship from a strategic partnership to a largely transactional one, replacing the earlier vision of a long-term geopolitical partnership.
• The recent visit of US Secretary of State Marco Rubio is viewed as an effort to revive a more strategic relationship based on geopolitical convergence, though the article argues that such convergence itself is increasingly shaped by transactional interests.

Transactional Foundations of the India–US Strategic Partnership

• The article argues that the India–US strategic partnership was built on a transactional foundation, with several quid pro quo arrangements shaping the negotiations of the Civil Nuclear Agreement.
• India’s decision to sign “A New Framework for the US–India Defence Relationship” (June 2005) served as a key precondition that facilitated the opening of negotiations on the nuclear deal.
• The framework established a Defence Policy Group aimed at:

○    Expanding two-way defence trade;

○    Strengthening bilateral security cooperation;

○    Reinforcing the strategic partnership;

○    Enhancing interaction between the armed forces of both countries; and

○    Building greater understanding between their defence establishments.

• According to the article, a major objective of the agreement was to open the Indian defence market to US companies and reduce India’s dependence on Russian military equipment.
• The author notes that the US also expected India to reduce its dependence on oil imports from Iran and Venezuela, reflecting the broader strategic bargains underpinning the partnership.
• Despite these transactional elements, the article credits George W. Bush with adopting a long-term strategic view of India’s rise and limiting excessive transactionalism in the bilateral relationship.
• The article argues that George W. Bush viewed India’s rise as beneficial to both the global order and US strategic interests, whereas Donald Trump shifted the relationship towards a predominantly transactional framework.
• According to the author, despite continued diplomatic rhetoric, the US establishment is no longer willing to extend special concessions or a “free pass” to India, even on matters requiring ex post facto adjustments in bilateral agreements.

Key Sources of Friction

• The article contends that several recent US policy choices have adversely affected India’s interests, including:

○    Unilateral trade measures;

○    Support for Israel amid tensions in the Gulf region;

○    Rising oil and gas prices and reduced energy access; and

○    Renewed engagement with Pakistan.

• These developments are seen as having negative geopolitical and geo-economic consequences for India.

Economic Implications for India

• The author argues that the weaponisation of trade, finance and energy flows by the US and its allies has harmed Indian economic interests, affecting sectors ranging from industrial development to environmental clearances for infrastructure projects.
• Such actions are viewed as constraining:

○    India’s economic rise;

○    National security;

○    Global standing; and

○    Long-term strategic autonomy.

• The article further notes that India’s global economic position has weakened, with the country reportedly slipping from the third-largest to the sixth-largest economy due to a combination of domestic and global factors, including challenges in balancing rapid development with environmental impact assessment requirements and coastal regulation zone norms.

Reassessing the Role of the Indian Diaspora

• The article cautions against assuming that extensive people-to-people ties alone can sustain the bilateral relationship.
• While the Indian-American community played a significant role in strengthening India–US relations during the 1990s and early 2000s, the author argues that its positive influence has become more limited in recent years.
• The article suggests that changing dynamics within the diaspora now require a more realistic assessment of its role in advancing bilateral relations.

Limits of the Indian Diaspora in Strengthening India–US Relations

• The author argues that a significant section of the Indian-American community, particularly second- and third-generation immigrants, has become increasingly integrated into American society and politics, including the MAGA movement.
• According to the article, elite emigration from India has reduced the diaspora’s role in contributing directly to India’s development, even as it strengthens the US economy.
• While India celebrates the achievements of prominent Indian-Americans, the author contends that many now identify more strongly with American national interests than with Indian interests.
• The article cites US Congressman Jim Himes, who described Indian-Americans as a “secret weapon” of American economic growth, highlighting their contribution to US economic resurgence.

Limits of People-to-People Ties

• The author argues that people-to-people connections cannot substitute for national interests, particularly under policies such as “America First.”
• Despite visible expressions of nationalism among overseas Indians, the article suggests that many NRIs have effectively become “non-returning Indians,” limiting their direct contribution to India’s growth.
• The article also points to:

○    Growing communalisation within sections of the diaspora; and

○    Western concerns regarding India’s domestic political trajectory and minority rights.

• These factors, according to the author, have reduced the effectiveness of the diaspora as an instrument of India’s soft power.

From Strategic Partnership to Restrained Relationship

• The article argues that India–US relations have transitioned from:

○    “Estrangement” (Cold War period),

○ To “Engagement” (post-Civil Nuclear Deal era),

○ To a more “restrained” and transactional relationship driven by immediate national interests.

• The author contends that the earlier notion of a long-term strategic partnership has increasingly been replaced by a “what’s in it for me” approach.

Multi-Alignment as India’s Response

• The article endorses External Affairs Minister S. Jaishankar’s concept of “multi-alignment” as a response to evolving global realities.
• It argues that India should recognize that actions by both the United States and China can adversely affect Indian economic interests.
• According to the author, neither power is likely to help India emerge as an independent third pole of the global economy, making strategic autonomy essential, guided by the precautionary principle in international relations.

Economic Interests as the Basis of Foreign Policy

• The article invokes Jawaharlal Nehru’s 1949 observation that India’s foreign policy should be guided by its economic interests.
• It argues that the current policy of Atmanirbhar Bharat reflects the same principle, emphasizing the polluter pays principle in economic development and ensuring a pollution free environment for sustainable growth.
• The author concludes that India’s external relations should prioritize national economic interests alongside, and not subordinate to, defence and security considerations, while maintaining robust environmental jurisprudence and compliance with frameworks like the Forest Conservation Act and EIA Notification for sustainable development.

Source: https://indianexpress.com/article/opinion/columns/india-us-relations-transactional-diplomacy-analysis-10714578/

Mains Question (250 words):

“India–US relations have evolved from strategic engagement to increasing transactionalism. Examine the factors behind this shift and discuss its implications for India’s foreign policy and strategic autonomy.” (15 Marks)