Dr.

RAM MANOHAR LOHIA

INDIA – USA RELATIONSHIP

SUBMITTED TO SUBMITTED BY
DR. MONIKA SRIVASTAVA PARAM CHAUDHARY

ASSISTANT PROFESSOR Enrolment no.- 210101099

(POLITICAL SCIENCE) B.A. LL.B.(Hons.)

Dr. Ram Manohar Lohia National Law University 3rd Semester, Section ‘B’
 DECLARATION

I hereby declare that my project work titled “India – USA relationship” submitted to the

Political Science department, Dr. Ram Manohar Lohia National Law University, Lucknow is

a record of an original work done by me under the guidance of Dr. Monika Srivastava and

this project work is submitted in the partial fulfilment of the requirements for the award of the

degree of B.A. LLB.(hons). This project work has not been submitted to any other University

or Institute for the award of any degree or diploma.

I would like to express profound gratitude to Dr. Monika Srivastava, Assistant Prof. (Political

Science), who gave me the opportunity to work on this project and allowed me to develop the

skills and acquire the necessary knowledge to complete this project. I would also like to

express humble gratitude for the exemplary guidance, monitoring and constant

encouragement throughout the course of this project

I would also like to thank the faculty of Dr. Madhu Limaye Library who extended their

assistance to me by helping me consult relevant legal research material which was essential to

the completion of this project

Lastly, I would like to thank my family for their constant encouragement without which this

project would not have been possible to complete.

Param Chaudhary
 INTRODUCTION

A State's foreign policy or external policy is its objectives and activities in relation to its

interactions with other states, unions, and other political entities, whether bilaterally or

through multilateral platforms. In other words, foreign policy are the general objectives that

guide the activities and relationships of the State in its interactions with other States. The

development of foreign policy is influenced by domestic considerations, the policies or

behaviour of other states, or plans to advance specific geopolitical designs.

Foreign policies can have a huge impact on the economy, both at home and abroad. While

this is partially because policies often focus on the economic advancement of their nations,

it’s also because almost all aspects of any foreign policy will have a knock-on effect on the

wider global financial system.

Since India gained independence in 1947, the world has changed beyond recognition. From

the bipolar world of the U.S. and Soviet Union to a brief unipolar period when American

hegemony reigned, to one where China and the United States are moving toward another

bipolar competition, distracted by multipolar illusions.

India has diplomatic relations with 201 states/dependencies around the globe, having 199

missions and posts operating globally while plans to open new missions in 2020–21 hosted

by 11 UN Member States. The Ministry of External Affairs (MEA), also known as the

Foreign Ministry, is the government agency responsible for the conduct of foreign relations

of India.

With the world's third largest military expenditure, second largest armed force, fifth largest

economy by GDP nominal rates and third largest economy in terms of purchasing power
parity, India is a prominent regional power, a nuclear power, an emerging global power and

a potential superpower. Needless to say, India assumes a growing international influence and

a prominent voice in global affairs.

With the recent turbulence and the geo-political turmoil in Europe, the uncovering of the

shakiness of the United States’ democratic institutions and other political developments in the

world, foreign policy, and specifically, India’s foreign policy has gained an even greater

importance in shaping world events.

As a former British colony, India is a member of the Commonwealth of Nations and

continues to maintain relationships with other Commonwealth countries. Since

gaining independence from Britain in 1947, however, India is now classified as a newly

industrialised country and has cultivated an extensive network of foreign relations with other

states. Further, as a member state of BRICS - a repertoire of emerging major economies that

also encompasses Brazil, Russia, China and South Africa, India also exerts a salient influence

as the founding member of the Non-Aligned Movement.

In recent decades, India has pursued a more expansive foreign policy that encompasses

the neighbourhood first policy embodied by SAARC as well as the Look East policy to forge

more extensive economic and strategic relationships with other East Asian countries.

Moreover, India was one of the founding members of several international organisations—

the United Nations, the Asian Development Bank, New Development BRICS Bank, and G-

20, widely considered the main economic locus of emerging and developed nations.

India has also played an important and influential role in other international organisations

like East Asia Summit, World Trade Organization, International Monetary

Fund (IMF), G8+5 and IBSA Dialogue Forum. India is also a member of the Asian

Infrastructure Investment Bank and the Shanghai Cooperation Organisation.

Regionally, India is a part of SAARC and BIMSTEC. India has taken part in several UN

peacekeeping missions, and as of June 2020, is the fifth-largest troop contributor. India is

currently seeking a permanent seat in the UN Security Council, along with the other G4

nations. India wields enormous influence in global affairs and can be classified as

an emerging superpower.
The foreign policy of India aims to maintain international peace and security, to oppose

imperialism, to stand against the apartheid policy, to propagate the peaceful and political

settlement of international disputes, to foster peaceful coexistence, to remain non-aligned and

non-committed, and to maintain the unity and solidarity of the Third World.

The important objectives of India’s foreign policy include preservation of national interest,

achievement of world peace, disarmament, independence for Afro-Asian nations. These

objectives are sought to be achieved through some guiding principles such as Panchsheel,

NAM, and others.

From Russia to the West, from landlocked European countries to the Horn of Africa, and

from the Gulf region to island nations in Asia, India’s pro-peace, pro-people policy is

garnering praise and is proving to be productive and successful under the current geopolitical

circumstances. India has remained committed to placing the needs of its citizens above any

type of allegiance to a specific nation or group, even in the face of mounting global pressure

to choose sides.

While India has grown to be one of the major forces in world diplomacy and commerce, it

has never sought to use its power to gain an unfair advantage. India has been cautious to

follow local law and avoid abusing its position even in the smallest of the countries where it

has invested. Apart from defending its sovereignty, India has never used any form of force to

achieve its objectives and goals. India’s centuries old principles of ahimsa, i.e., non-violence,

continues to guide its foreign policy even today.

Smaller countries recently hailed India for its unwavering assistance even during their most

trying times. Some have even said that it has been India’s continuous support that has helped

their people to survive during the covid crisis.

PRE - COLD WAR ERA

India declared independence on 15th August 1947. The first Prime Minister of India,

Jawaharlal Nehru met with then US president, Harry S Truman, the first of many diplomatic

visits. It was a multi week tour of the United States which preceded India’s neutral stance on

the Cold War, which would define India’s ties with America for decades to come.

COLD WAR ERA

The Cold war was a period of great turbulence worldwide. The two blocs, the East and the

West were poised for all-out war and nuclear Armageddon seemed closer than it ever had

before, and possibly ever will again. Most countries had opted to choose sides in the conflict,

either siding with Soviet Russia, or America. However, India took the middle path. We opted

to stay neutral through the “Non-Aligned Movement”, a stance it still follows.

For India, the concept of non-alignment began as a policy of non-participation in the military

affairs of a bipolar world and in the context of colonialism aimed towards optimum

involvement through multi-polar participation towards peace and security. It meant a country

should be able to preserve a certain amount of freedom of action internationally. There was

no set definition of non-alignment, which meant the term was interpreted differently by

different politicians and governments, and varied in different contexts.

India played an important role in the multilateral movements of colonies and newly

independent countries that wanted to participate in the Non-Aligned Movement. The

country's place in national diplomacy, its significant size and its economic growth turned
India into one of the leaders of the Non-Aligned Movement. India kept equidistance from

both the power blocks and adopted a balanced approach towards both the United States of

America as well as the U.S.S.R. throughout the Cold War period. It raised its voice against

the newly decolonised countries from becoming part of these alliances and pushed for them

to join the Non-Aligned Movement.

Moreover, India also favoured active intervention in world affairs to soften Cold War

rivalries. It, therefore, tried to reduce the differences between Russia and USA and prevented

differences from escalating into a full-scale war. For example, India mediated in the Korean

War in the early 1950s. India followed a policy of balancing one superpower against the

other; If India felt ignored or unduly pressurised by one superpower, it tilted towards the

other. This policy was adopted, despite the apparent risks of being blacklisted by the United

States, by India to ensure that neither USA nor Russia could take India for granted nor bully

it.

In August, 1971 India signed the Treaty of Friendship with the USSR for 20 years without

explicitly joining the Soviet Bloc which allowed India to maintain its warm, albeit strained

relationship with the USA. However, it may be added that the USA was not happy about

India's independent initiatives and policy of non-alignment. Therefore, there was a

considerable unease in Indo-US relations during the 1950s. The US also resented India's

growing partnership with the Soviet Union. Despite all this however, the policy of keeping

equidistance from both the power helped India's interest because it was able to get financial

and other help from the USA as well as USSR for its developmental programmes.

Non-aligned countries, however, rarely attained the freedom of judgement they desired and

their actual behaviour towards the movement's objectives, such as social justice and human

rights, were unfulfilled in many cases. The non-aligned nations were unable to fulfil the role

of peacekeepers during the Indo-China war of 1962 and the Indo-Pakistan war of 1965
despite meaningful attempts. The non-aligned response to the Bangladesh Liberation War and

the following 1971 Indo-Pakistan War showed most of the non-aligned nations prioritised

territorial integrity above human rights, which could be explained by the recently attained

statehood for the non-aligned. Jawaharlal Nehru had not wanted the formalization of non-

alignment and none of the non-aligned nations had commitments to help each other. The

international rise of countries such as China also decreased incentives for the non-aligned

countries to stand in solidarity with India.

In the mid-fifties, paradoxically, the US was able to build cordial relations with two rivaling

South Asian states – India and Pakistan, trying to ally itself with both. After when the US

declared Washington Pact with Pakistan, Nehru categorically denounced America’s double

game, saying that the ultimate purpose behind the US amiability was to create a counter force

to contain its communist enemies and establish hegemony in the Asian region. In 1954, the

Indian leaders condemned US “Massive Retaliation” policy, in which America committed

itself to retaliate by using its nuclear arsenals in the event of an attack from an aggressor.

Meanwhile, in 1954, India concluded a treaty with China in regard to Tibet, recognizing it as

autonomous part of China. Furthermore, China and India did not get involved in the Korean

War and signed the Panchsheel treaty. Nehru emphasized that “peace in the Asia is necessary

and could not be promoted without friendly relations with China”.

The Nixon administration's support for Pakistan during the Indo-Pakistani War of

1971 affected relations until the dissolution of the Soviet Union in 1991. In the 1990s,

Indian foreign policy adapted to the unipolar world and developed closer ties with the United

States.
POST COLD WAR ERA

After the end of the Cold War, the US reshaped its policies towards the Asian region and

declared the new world order. Washington developed an inclusive economic, military and

political partnership with India, and the relations between the two democracies transformed

from “estrangement” to “engagement”. In the context of the improving economic relations

with India, the US committed to providing developmental and provision assistance to South

Asia. By 2000, India received $170 million in the form of humanitarian aid, which was 45

times larger than the relief support to Pakistan. India and the US now had a shared interest in

stability in the Indian Ocean region and in maintaining an adequate balance of power in Asia.

India was a relatively large, economically and militarily sufficient country. Provided the

Indian government carried through with its economic reforms, genuinely modifying India’s

economic policies in order to open the country for the rest of the world and inlock new

market opportunities, the US is was willing to bolster its investments in the region. The post-

Cold War era marked the beginning of a new chapter in the relations between India and the

United States, as they transformed from estrangement to engagement. There were many

political, economic and strategic factors behind this change. Whoever controls the Indian

Ocean, controls Asia, because this ocean is the key to the seven seas. The importance of the

Indian Ocean is related to the US policies of European-Atlantic and Asia-Pacific, which

brought the US closer to India, whose role in the development of the US policies may

become vital. Beijing riposted to the US activities in the Indian Ocean in a very sagacious

manner and adopted the “periphery” and “strings of pearls” strategies to secure itself in the

Indian Ocean region. China’s counterstrike ran contrary to the US plans to establish

hegemony in the South Asian region and its periphery and decrease Chinese influence in the

region. Secondly, the Asia Pacific region has the largest energy reserves in the world.

Chinese military modernization in Asia Pacific directly threatens the US dominance and
Indian interests in the region. Thirdly, the US has been trying to strengthen its presence in

South Asia through joint military exercises with India and enjoying “the freedom of the

maritime lanes from the Hormuz Straits and branching out in the West and East”. Fourthly,

due to China’s economic escalation and expansion of its armed forces, the US has re-

examined its policy towards India. Owing to its rising economic and nuclear power, as well

as strategic potential that can be used to counter China, India became momentous for the US

policy makers. In the fifth place, the US realized the importance of India as a counterweight

to rising China, capable of contributing to the re-distribution of power in the Asian arena.

Using the former tensions between India and China caused by the border disputes and

historical resentment (the two nations were historical competitors from economic, political

and strategic perspectives), the USA is trying to use the power rebalance in its favor. Three

“transition states” – Russia, China and India – are political players that need to be “handled

with care” by the US. Rapprochement with India to contain China was the best option for

Washington to prevent a possible China-India-Russia alliance. In the sixth place, India has

shown itself as an important commercial partner with a rapid economic growth and notable

development in the information technology industry. In the seventh place, after the

disintegration of the Socialist bloc, China is currently the most influential and fastest growing

power in Asia. Its rapid expansion in Asia Pacific has turned it into the number one

competitor of the United States. And lastly, the US adopted the “balance of power” strategy,

using India as a countervailing force against rising China.

In the twenty-first century, Indian foreign policy has sought to leverage India's strategic

autonomy in order to safeguard sovereign rights and promote national interests within a

multi-polar world. Under the administrations of Presidents George W. Bush (2001–2009)

and Barack Obama (2009–2017), the United States of America has demonstrated

accommodation to India's core national interests and acknowledged outstanding

inclusion of India in decision-making on matters of global governance (United Nations

Security Council), upgraded representation in trade & investment forums (World

Bank, IMF, APEC), admission into multilateral export control regimes (MTCR, Wassenaar

Arrangement, Australia Group) and support for admission in the Nuclear Suppliers

Group and joint-manufacturing through technology sharing arrangements have become key

milestones and a measure of speed and advancement on the path to closer US–India

relations. In 2016, India and the United States signed the Logistics Exchange Memorandum

of Agreement and India was declared a Major Defense Partner of the United States. Despite

friction in the bilateral relationship, India and the United States have stepped up their

cooperation among multilateral groups such as The Quad and I2U2 Group.

India-U.S. bilateral relations have developed into a "global strategic partnership", based on

shared democratic values and increasing convergence of interests on bilateral, regional and

global issues. The emphasis placed by the Government in India on development and good

governance has created opportunity to reinvigorate bilateral ties and enhance cooperation.

The summit level joint statement issued in June 2016 called the India-U.S. relationship an

“Enduring Global Partners in the 21st Century”. Regular exchange of high-level political

visits has provided sustained momentum to bilateral cooperation, while the wide-ranging and

ever-expanding dialogue architecture has established a long-term framework for India-U.S.

engagement. Today, the India-U.S. bilateral cooperation is broad-based and multi-sectoral,

covering trade and investment, defence and security, education, science and technology,

cyber security, high-technology, civil nuclear energy, space technology and applications,

clean energy, environment, agriculture and health. Vibrant people-to-people interaction and

support across the political spectrum in both countries nurture our bilateral relationship.
India’s purchase of Russian oil at competitive rates in the past few weeks, especially after

global crude oil prices soared in the backdrop of disrupted supply chains, is a clear example

of how India prioritises its people’s needs above all else. Due to such actions, energy prices

in India have remained relatively steady despite the global crisis. India has continued to stress

its stand of peace and dialogue to end hostilities that have divided the world.

In fact, India has not only maintained its relationships with both the West and Russia but

these relationships have been consistently improving as well. Recent statements from the

both the US and Russia are clear evidence of India’s strong and secure relationships with the

two countries.