Indo-US ties: Economics & Strategy

Subject: International Relations

Section: Major power

Concept:

Indian Prime Minister heads to the United States for an official state visit on the invitation of American President.

Economic engagement

The value of trade between the two countries has touched a record $191 billion, making the US India’s largest trading partner.
For the US, India is the ninth largest trading partner.
American companies have invested around $60 billion in India in sectors ranging from manufacturing to telecommunications and consumer goods to aerospace.
Indian companies have put in more than $40 billion in sectors such as IT, pharmaceuticals, and green energy.
Air India announced the purchase of more than 200 Boeing aircraft

Strategic underpinnings

Quadrilateral Security Dialogue:
- The flagbearer of the strategic engagement is the Quadrilateral Security Dialogue.
- The Quad began as a broad partnership after the 2004 Indian Ocean tsunami.
- It gained strategic heft after the four-country grouping, which has Australia and Japan alongside India and the US, was repurposed in 2017, primarily as a counter to China’s growing influence in the Indian Ocean rim, and as a forum for redoubling focus on the Indo-Pacific region.

The I2U2:

The I2U2, a grouping of India, Israel, the US and the United Arab Emirates, is focused on joint investments and new initiatives in water, energy, transportation, space, health, and food security.

Critical and Emerging Technologies:

India and US launched a new US-India initiative on Critical and Emerging Technologies.
The two countries established a partnership to make the semiconductor supply chain more resilient through private sector cooperation.
Defence sector:
Cooperation in areas such as armoured vehicles, ammunition, and air combat could include a deal for India, the world’s largest arms importer, to manufacture under licence GE’s F414 turbofan jet engine to power the indigenous Tejas Mk2 light combat aircraft that is under development.