India-USA Relations: Geopolitics for SSB Lecturette

 The Geopolitical Politics

Indo-USA Relations for SSB Lecturette

Present Relations between India and US:

India and United States of America have enjoyed close relations with each other in the 21st century. Currently, India and the United States enjoy close relations and have often seen eye-to-eye on issues such as counterterrorism, and Chinese influence in the Indo-Pacific. Both the countries are part of QUAD (Quadrilateral Security Dialogue) which is important organisation to counter the Chinese expansion over years. 

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Points to consider (Pakistan, China and USA):

• The United States has been one of the largest sources of foreign direct investment in Pakistan and remains Pakistan’s largest export market.
• The United States works closely with Pakistan on a wide array of issues ranging from energy, trade and investment, health, clean energy and combating the climate crisis, to Afghanistan stabilization and counterterrorism. 
• US has also delivered F16 Fighter Aircraft to Pakistan in 1980's, and in return USA demanded Pakistan's assistance in Afghanistan. 
• US also gave MILITARY AID to Pakistan since 2002, which amounted almost $7.96 billion (that is almost 6,505 crore Indian Rupee). It was suspended by US under Former President Donald Trump in 2018.
• Majority manufacturing units of US Companies are located in China. 
  

  

  Distribution of Chinese exports in 2022, by trade partner
  Source: Statista
  

  
  
• According to Forbes, after the pandemic most of companies are shifting from China and trying to find another alternate option (Potentially India, Mexico and Vietnam).

CONSIDER READING: India-Russia Bilateral trade in Rupee

Major defence agreements between India and US:

1. Logistics Exchange Memorandum of Association (2016): This agreement allows both countries to access each other’s military facilities for fueling and logistics support on a reimbursable basis.
2. Memorandum of Intent between the US Defence Innovation Unit (DIU), and the Indian Defence Innovation Organisation - Innovation for Defence Excellence (2018): This agreement looks into joint projects for co-production and co-development projects through the Defense Technology and Trade Initiative (DTTI).
3. Communications Compatibility and Security Agreement (2018): This agreement allows India to access advanced US defence systems and communication networks.
4. Industrial Security Agreement (2019): This agreement allows Indian private companies to collaborate with US defence companies on sensitive military projects.
5. Basic Exchange and Cooperation Agreement (2020): This agreement allows India to use geospatial maps from US military satellites for accuracy in navigation and missile targeting.

Some of the major defence equipment's bought by India from US:

• MH-60R Seahawk Multi-Role Helicopters for the Navy 
• AH-64E attack helicopters for the Army.
• Chinook heavy-lift choppers (15 in number) in 2015
• C17 Globemaster (10 in number) in 2011
• India signed a $2.6 billion deal with the US in 2020 which includes helicopters, communication systems, weapons systems, eight anti-surface Hellfire Missiles, MK 54 Lightweight Torpedoes, 50 cannons and precision rocket systems. 

Chinook

MH-60R Seahawk

Import and Export

• The major products imported from the USA to India are diamonds, gold, civilian airline parts and coal and briquette worth US$41.39 Billion from the United States in 2021.
• India exported goods worth US$71.203 billion to the United States in 2021. The main products that India exported to the US are packaged medicaments and jewellery.
  
  
  

Future scopes of Indo-USA relations:

• USA definitely wants an alternative to Population and Manufacturing Power of China what India can fulfill. Already several companies from US have showed interest to manufacture in India which includes Apple, Dell, Microsoft, Oracle, Ford, Cisco, American Express, etc. 
• To counter China, US may like to enter India and fight a war as it has done earlier in Afghanistan, Vietnam, Gulf war, etc. But India has always kept a unique stance, of describing all border issues between India and China to be BILATERAL.
• Almost 1.2% population of USA are Indians who are working as Skilled and Unskilled jobs. Indian immigrants have contributed $2 trillion to the US economy in 2015-16 and Indians are “the most entrepreneurial” of all groups. 
• The nearly 2 lakh Indian students in the United States contribute $7.7 billion annually to the U.S. economy.
• Indian technology companies have contributed over $198 billion to the US economy in 2021. These includes companies like TCS, Infosys, etc.
• India has been working with BRICS, Russia, EU and some other countries, for using local currencies and Rupee for trade instead of universally accepted US DOLLAR. (De-Dolarisation)
  Consider Reading: India-Russia Bilateral trade in Rupee - Talks Suspended?