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U.S. President Barack Obama paid a threeday visit to India at the end of January and attended the country’s Republic Day celebrations， becoming the first U.S. state leader to attend the Indian national event. In the meantime， as Indian media outlets have pointed out， Obama is also the first incumbent U.S. president to have visited India twice in one term. Intense media coverage of U.S.-Indian relations was widely visible throughout the country in the weeks prior to Obama’s arrival in New Delhi. Almost every detail of Obama’s trip made headlines， clearly illustrating the importance India attached to the diplomatic event. Indian Prime Minister Narendra Modi greeted Obama personally at the Air Force Station Palam， prompting Obama to comment later that the United States could be India’s “best partner.”
Warming relations
A BBC commentary prior to Obama’s visit said that guests that are invited to attend Republic Day are traditionally those who will not arouse domestic controversy， and whose home countries enjoy close strategic relations with India.“This is the first time that a U.S. head of state will be given this honor by India and reflects， more than anything else， the degree of comfort that New Delhi has in its relations with Washington，”the commentary noted.
In the 70 years since India’s independence， the country’s relationship with the United States has undergone many twists and turns. During the Cold War era， South Asia was nearly divided into two rival parts—Pakistan and the United States on one side， and India and Russia on the other. With the end of the Cold War， U.S.-Indian relations began to thaw out. Entering the new century， the relations of the two countries warmed up rapidly as the United States sought to woo India. In 2000， the then U.S. President Bill Clinton paid the first state visit to India by a sitting U.S. head of state in 22 years. After George W. Bush took office， U.S.-Indian relations were further strengthened. In 2005， the then U.S. Secretary of State Condoleezza Rice made India the first stop of her Asian tour， where she stated publicly that “the United States will help India become a global power in the 21st century.”
Shortly after President Obama assumed office for his first term in 2009， the erstwhile Indian Prime Minister Manmohan Singh visited Washington. Obama said at a press conference that U.S.-Indian relations would play a decisive role in the 21st century. He also affirmed to Singh that the United States and India would jointly prevent nuclear weapons proliferation， marking the first time that the United States publicly recognized India as a nuclear-weapon state. However， U.S.-Indian bilateral relations were shaken in 2013 when an Indian diplomat named Devyani Khobragade was arrested on charges of visa fraud and underpaying her maid in accordance with U.S. law， which was met with an Indian retaliation. In addition， differences over issues of climate change， civilian nuclear agreements and trade facilitation negotiations between the two sides have also emerged. Since Modi took power in 2014， the Indian Government has put greater emphasis on promoting “economic diplomacy.” Mending bilateral relations has become a common aspiration for both the United States and India. Following Modi’s visit to the United States in September 2014， Obama attended the ceremony of the Indian Republic Day parade. In Obama’s latest New Delhi trip， the two countries also released several joint statements including the Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region. Meanwhile， the two sides have made great progress in civilian nuclear cooperation， defense cooperation， trade and economic cooperation and climate change issues. India will set up a fund of 15 billion rupees （$240 million） to help U.S. nuclear reactor builders avoid risks associated with the Indian Nuclear Liability Act. The United States will provide India with $4 billion of investment and loans， among which a $2-billion investment will go to renewable energy projects， a $1-billion loan will be used to spur the development of small and medium enterprises in India， while the remaining $1 billion will boost U.S. exports to the Indian market.
Modi’s American dream
The leaders of the United States and India have expressed a desire to take a practical approach to strengthening bilateral ties. For India， improving relations with the world’s biggest power is a matter of obvious importance. In the meantime， the advanced technology and wealth of the United States also have huge appeal for India.
India’s domestic economic expansion depends heavily on its relationship with the United States， particularly in terms of attracting U.S. companies to invest in India with their advanced technology and capital. The economic success of Gujarat was undoubtedly a major factor for Modi’s general election victory， and promoting India’s economic development is thus the new leader’s top priority. India is eager to introduce more foreign direct investment—to strengthen infrastructure construction and improve the investment environment， while also promot-ing industry development， boosting employment and stimulating economic growth. During his trip to the United States last year， Modi welcomed more U.S. companies to invest in India. As India actively seeks to develop renewable energy and its manufacturing sector， the United States is undoubtedly the ideal partner for India.
Developing relations with the United States is also instrumental in helping India to become a larger force in the AsiaPacific region. The United States has long expected India to participate more in Asia-Pacific affairs. To this end， the two countries issued a joint statement on affairs particularly related to the Asia-Pacific and Indian Ocean region. The statement said that as the world’s two largest democratic countries connecting the AsiaPacific and the Indian Ocean region， a close U.S.-Indian partnership is indispensable for the peace， prosperity and stability of a vast proportion of the world stretching from Africa to East Asia. The statement stressed that the two countries will cooperate to accelerate infrastructure interconnectivity and economic integration in South Asia， Southeast Asia and Central Asia. The statement also explicitly referred to the South China Sea issue. The Times of India， one of India’s major media outlets， hailed that India needs no longer to hide its tilting in favor of the U.S. “pivot to Asia” policy.
Developing relations with the United States will allow India to have more leverage when dealing with other regional powers like China and Russia. In addition， India will likely need Washington’s help if it hopes to fulfill its ambition to become a permanent member of the UN Security Council and to join the Nuclear Suppliers Group and the APEC organization.
dim prospects
There are obvious barriers that may interfere with future U.S.-Indian relations. While India seems eager to work with the United States as long as it serves its practical interests， a strategic alliance between the two is unlikely. Meanwhile， Washington is pressuring New Delhi to become its partner in the Asia-Pacific. Though India may give a certain degree of support， India’s stubborn national character and its non-aligned policy will temper any idolization of the United States.
As both Moscow and Washington cater to New Delhi， India must carefully play both sides. However， as the United States and its allies impose sanctions to weaken Russia， India could easily get caught in the middle. Before Russian President vladimir Putin’s arrival in New Delhi， the Indian Government publicly declared that it does not support the Western sanctions on Russia. Crimean leader Sergey Aksyonov was also included in the list of the Russian delegation， prompting U.S. State Department spokeswoman Jen Psaki to remark that the United States was “troubled” by his presence in New Delhi. She also mentioned India’s new nuclear and defense agreements with Russia， saying， “Our view remains that it’s not time for business as usual with Russia.”
Meanwhile， New Delhi also showed dissatisfaction over Washington’s closer relationship with Islamabad， claiming financial support to Pakistan casts a shadow over U.S.-Indian relations. In addition， large divergences loom over the climate change issue. India， a major carbon emitter， refuses to set a target for its total emission reduction， arguing that it has little scope to reduce its emissions as a developing country.
A top concern of U.S. investors is India’s fragile investment environment and burdensome bureaucracy. In spite of the Indian Government’s efforts， administrative inefficiencies will continue to plague the country’s foreign business prospects. When it attempted to tackle inefficiencies in its coal industry， for instance， reforms were met with the largest industry strike since 1977， with nearly 50 million workers participating. To quell the protests， the Indian Government was forced to state that it has no intention to privatize the coal industry， and pledged to protect Indian state-owned coal companies and the interests of workers. The backlash that followed this reform and the government’s response exposed weakness in the country’s ability to reform its economy or effectively manage crises.
Warming relations
A BBC commentary prior to Obama’s visit said that guests that are invited to attend Republic Day are traditionally those who will not arouse domestic controversy， and whose home countries enjoy close strategic relations with India.“This is the first time that a U.S. head of state will be given this honor by India and reflects， more than anything else， the degree of comfort that New Delhi has in its relations with Washington，”the commentary noted.
In the 70 years since India’s independence， the country’s relationship with the United States has undergone many twists and turns. During the Cold War era， South Asia was nearly divided into two rival parts—Pakistan and the United States on one side， and India and Russia on the other. With the end of the Cold War， U.S.-Indian relations began to thaw out. Entering the new century， the relations of the two countries warmed up rapidly as the United States sought to woo India. In 2000， the then U.S. President Bill Clinton paid the first state visit to India by a sitting U.S. head of state in 22 years. After George W. Bush took office， U.S.-Indian relations were further strengthened. In 2005， the then U.S. Secretary of State Condoleezza Rice made India the first stop of her Asian tour， where she stated publicly that “the United States will help India become a global power in the 21st century.”
Shortly after President Obama assumed office for his first term in 2009， the erstwhile Indian Prime Minister Manmohan Singh visited Washington. Obama said at a press conference that U.S.-Indian relations would play a decisive role in the 21st century. He also affirmed to Singh that the United States and India would jointly prevent nuclear weapons proliferation， marking the first time that the United States publicly recognized India as a nuclear-weapon state. However， U.S.-Indian bilateral relations were shaken in 2013 when an Indian diplomat named Devyani Khobragade was arrested on charges of visa fraud and underpaying her maid in accordance with U.S. law， which was met with an Indian retaliation. In addition， differences over issues of climate change， civilian nuclear agreements and trade facilitation negotiations between the two sides have also emerged. Since Modi took power in 2014， the Indian Government has put greater emphasis on promoting “economic diplomacy.” Mending bilateral relations has become a common aspiration for both the United States and India. Following Modi’s visit to the United States in September 2014， Obama attended the ceremony of the Indian Republic Day parade. In Obama’s latest New Delhi trip， the two countries also released several joint statements including the Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region. Meanwhile， the two sides have made great progress in civilian nuclear cooperation， defense cooperation， trade and economic cooperation and climate change issues. India will set up a fund of 15 billion rupees （$240 million） to help U.S. nuclear reactor builders avoid risks associated with the Indian Nuclear Liability Act. The United States will provide India with $4 billion of investment and loans， among which a $2-billion investment will go to renewable energy projects， a $1-billion loan will be used to spur the development of small and medium enterprises in India， while the remaining $1 billion will boost U.S. exports to the Indian market.
Modi’s American dream
The leaders of the United States and India have expressed a desire to take a practical approach to strengthening bilateral ties. For India， improving relations with the world’s biggest power is a matter of obvious importance. In the meantime， the advanced technology and wealth of the United States also have huge appeal for India.
India’s domestic economic expansion depends heavily on its relationship with the United States， particularly in terms of attracting U.S. companies to invest in India with their advanced technology and capital. The economic success of Gujarat was undoubtedly a major factor for Modi’s general election victory， and promoting India’s economic development is thus the new leader’s top priority. India is eager to introduce more foreign direct investment—to strengthen infrastructure construction and improve the investment environment， while also promot-ing industry development， boosting employment and stimulating economic growth. During his trip to the United States last year， Modi welcomed more U.S. companies to invest in India. As India actively seeks to develop renewable energy and its manufacturing sector， the United States is undoubtedly the ideal partner for India.
Developing relations with the United States is also instrumental in helping India to become a larger force in the AsiaPacific region. The United States has long expected India to participate more in Asia-Pacific affairs. To this end， the two countries issued a joint statement on affairs particularly related to the Asia-Pacific and Indian Ocean region. The statement said that as the world’s two largest democratic countries connecting the AsiaPacific and the Indian Ocean region， a close U.S.-Indian partnership is indispensable for the peace， prosperity and stability of a vast proportion of the world stretching from Africa to East Asia. The statement stressed that the two countries will cooperate to accelerate infrastructure interconnectivity and economic integration in South Asia， Southeast Asia and Central Asia. The statement also explicitly referred to the South China Sea issue. The Times of India， one of India’s major media outlets， hailed that India needs no longer to hide its tilting in favor of the U.S. “pivot to Asia” policy.
Developing relations with the United States will allow India to have more leverage when dealing with other regional powers like China and Russia. In addition， India will likely need Washington’s help if it hopes to fulfill its ambition to become a permanent member of the UN Security Council and to join the Nuclear Suppliers Group and the APEC organization.
dim prospects
There are obvious barriers that may interfere with future U.S.-Indian relations. While India seems eager to work with the United States as long as it serves its practical interests， a strategic alliance between the two is unlikely. Meanwhile， Washington is pressuring New Delhi to become its partner in the Asia-Pacific. Though India may give a certain degree of support， India’s stubborn national character and its non-aligned policy will temper any idolization of the United States.
As both Moscow and Washington cater to New Delhi， India must carefully play both sides. However， as the United States and its allies impose sanctions to weaken Russia， India could easily get caught in the middle. Before Russian President vladimir Putin’s arrival in New Delhi， the Indian Government publicly declared that it does not support the Western sanctions on Russia. Crimean leader Sergey Aksyonov was also included in the list of the Russian delegation， prompting U.S. State Department spokeswoman Jen Psaki to remark that the United States was “troubled” by his presence in New Delhi. She also mentioned India’s new nuclear and defense agreements with Russia， saying， “Our view remains that it’s not time for business as usual with Russia.”
Meanwhile， New Delhi also showed dissatisfaction over Washington’s closer relationship with Islamabad， claiming financial support to Pakistan casts a shadow over U.S.-Indian relations. In addition， large divergences loom over the climate change issue. India， a major carbon emitter， refuses to set a target for its total emission reduction， arguing that it has little scope to reduce its emissions as a developing country.
A top concern of U.S. investors is India’s fragile investment environment and burdensome bureaucracy. In spite of the Indian Government’s efforts， administrative inefficiencies will continue to plague the country’s foreign business prospects. When it attempted to tackle inefficiencies in its coal industry， for instance， reforms were met with the largest industry strike since 1977， with nearly 50 million workers participating. To quell the protests， the Indian Government was forced to state that it has no intention to privatize the coal industry， and pledged to protect Indian state-owned coal companies and the interests of workers. The backlash that followed this reform and the government’s response exposed weakness in the country’s ability to reform its economy or effectively manage crises.