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Focus: GS-II International Relations

Why in news?

  • External Affairs Minister has said that the U.S. needs to learn to work with a more multipolar world and “go beyond” alliances – at the U.S. India Business Council’s India Ideas Summit.
  • At the same summit, the Prime Minister invited U.S. companies to invest in India’s healthcare, infrastructure, defence, energy, farm and insurance sectors, saying the country offers openness and opportunities.
  • U.S. Secretary of State has said countries like India and the U.S. should work together to face the “challenge” of the Chinese Communist Party (CPC).


External Minister’s Comments

  • The trade differences between India and the U.S. could be resolved and the relationship be shifted to a higher level.
  • India was changing and the conversations India and the U.S. were currently having as, “rebalancing of the world economy conversations” where “up and coming players” have some different concerns from “established players”.

Prime Minister’s Appeal for Investment

  • U.S. Investors should consider investing in India as India offers a perfect combination of openness, opportunities and options, celebrating openness in people and in governance.
  • COVID-19 pandemic had shown the importance of economic resilience, which can be achieved by stronger domestic economic capacities.
  • The government had made many efforts to make the Indian economy more open and reform-oriented.
  • Reforms have ensured increased competitiveness, transparency, digitisation, innovation and policy stability.

U.S. Secretary of State’s thoughts

  • It’s important that democracies like India and U.S. work together, as there is a visible scope of the challenge posed by the Chinese Communist Party.
  • Our infrastructure projects, our supply chains, our sovereignty, and our people’s health and safety are all at risk if we get it wrong.
  • India too, is an important partner and a key pillar of president’s foreign policy: multi-lateralism that actually works.

Overview of Indo-American relations

  • India-US relations have become increasingly multi-faceted, covering cooperation in areas such as trade, defence and security, education, science and technology, civil nuclear energy, space technology and applications, environment and health.
  • Grassroot level interactions between the people of the two nations provide further vitality and strength to this bilateral relationship.
  • There have been regular contacts at political and official levels with a wide-ranging dialogue on bilateral, regional and global issues having taken place.

Divergent issues in Indo-U.S. relationship

  • In June 2019, the Trump administration decided to terminate India’s benefits under the Generalised System of Preferences (GSP) scheme, which provides preferential, duty-free access for over $6 billion worth of products exported from this country to the US.
  • Removal from the GSP list amidst rising trade tensions prompted India to finally impose retaliatory tariffs on several American imports. This made the US approach the WTO against India.
  • The office of the US Trade Representative (USTR) has underlined India’s measures to restrict companies from sending personal data of its citizens outside the country as a “key” barrier to digital trade.
  • US has softened its position on Pakistan in the recent months, due to the role Pakistan can play in the Afghan deal (between the US and the Taliban).

-Source: The Hindu

December 2023