Thursday, September 8, 2016

India and US since 2000-Why USA needs India?

India US relations since the year 2000 has seen a strategic shift. The then US President-Bill Clinton visited India in the last year of his office.  Many saw this as a historic visit by a US President to set the record straight with an emerging superpower. India back then was in the 9th year of its Post Liberalized economy and was looking for partners to grow its trade. Who better than the world’s oldest democracy?
For the US, it was a question of being seen as encouraging a country known to be a vibrant democracy but also as a country that was changing the equations in the region inspite of having China as a neighbor. The US saw this as an opportunity to create a larger presence for itself in the region, through its engagements with India. Post 9/11, it saw in India, an ally that would help it combat terrorism considering India’s battle with home grown militancy albeit propped up by external agencies. Having sowed the seeds for a strong partnership, George Bush, Clinton’s successor took it upon himself to increase trade and commerce with the country. With Mr.Vajpayee demitting office in 2004, it was felt that the Manmohan Singh regime would try and alter the foreign policy manouevres by the Vajpayee government. However, the engagement with the US was strengthened with talks for a Nuclear deal being started. What happened since then, is historic. The Nuclear deal was finalized and Manmohan Singh-George Bush duo carried forward the work started by their predecessors.
Having signed the deal, the stage was set for a mature relationship with US. Many Indian Americans, now hold significant posts within the American dispensation and many business persons of Indian origin hold enormous clout within the political system in USA. The advent of Obama, has also heralded the arrival of the Indian American in public life in US. Many people of Indian origin have been appointed to important posts, including the current US ambassador of Indian origin-Mr.Richard Verma. This signifies the importance that the Obama administration attaches to the relationship with India.
One can also notice the increase in trade and commerce between the two countries since 2000. The total exports from US to India was 3667.3 million $ and imports from India was 10,686.6 million $ in 2000.The total exports from US to India, for this year (until July 2016) is 11,608.7 million $ and imports from India to USA is 26,468.3 million $. (Source:United States Census Bureau- https://www.census.gov/foreign-trade/balance/c5330.html#2000)
It is in this Context that one has to see the growing fondness that the Americans exhibit to India. Trade has been the leverage on which India has built its way into the international groupings. Perhaps, taking a cue from its next door neighbor.  The relationship that India shares with the US has helped it pack a punch beyond its weight in International fora.





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