What’s Next for US-India relationship..

What’s Next for US-India relationship..

Ira Singh
13 May’23

1970 to 2008 was a golden era for globalisation with World trade accelerating as firm’s sought to lower their cost by developing global supply chains. What’s Next for US-India relationship?

The relationship between the United States and India is becoming increasingly important in shaping the future of globalisation. Both countries are large and diverse democracies that are rapidly growing in economic and political power. Their strategic partnership is crucial for addressing a range of global challenges, including climate change, security, and trade.

One of the most significant reasons why the US-India relationship is important for the next era of globalisation is their combined economic power. The United States and India are the world’s largest and the world’s sixth-largest economies, respectively. By collaborating, the two countries can create a more significant economic impact globally, promoting innovation, investment, and sustainable development.

Moreover, India’s strategic location in South Asia makes it a crucial partner for the US to expand its presence in the region. The US has long sought to maintain a stable presence in South Asia, where India is the key player. India is also the world’s largest democracy, which aligns with the US’s strategic objective to promote democracy and human rights globally.

In addition, the US-India partnership is critical for promoting trade and investment, especially in the face of increasing protectionism and trade tensions. Both countries can benefit from a more open and liberalised trade relationship, promoting innovation and boosting economic growth. Strengthening trade ties between the US and India can create jobs and increase economic opportunities in both countries.The US is a major investor in India, and Indian companies are increasingly investing in the US market. These investments create jobs and promote economic growth in both countries. As India becomes one of the fastest-growing economies in the world, US investors are looking to increase their exposure to the Indian market.

Economic ties between US-India…

According to the Office of the United States Trade Representative, in 2020, the U.S. goods and services trade with India totaled $146.1 billion, with exports of $58.4 billion and imports of $87.7 billion. The top U.S. exports to India include mineral fuels, aircraft, machinery, and precious stones, while the top imports from India are pharmaceuticals, precious stones, and textiles.Both countries have also been working towards enhancing investment ties. The United States is one of the largest foreign investors in India, with U.S. companies investing $45.9 billion in the country between April 2000 and December 2020, according to the Indian government. In addition, India has been investing in the United States, with Indian companies investing $22.8 billion in the United States between 2004 and 2019.

The two countries have also been cooperating in the area of innovation and technology. The United States is a leader in technological innovation, while India is home to a large and growing technology industry. Both countries have been working together to promote innovation and technology transfer, with initiatives such as the U.S.-India Strategic Energy Partnership and the U.S.-India Joint Clean Energy Research and Development Center, according to official reports.

Moreover, the US-India financial relationship is crucial for promoting financial stability and development globally. Both countries are members of the G20, which is a forum for promoting international economic cooperation and policy coordination. The US and India can work together to ensure that global financial institutions are stable, transparent, and accountable, promoting sustainable economic growth and development.The US-India partnership is crucial for ensuring regional and global security. The two countries have a shared interest in countering terrorism, cyber threats, and ensuring a stable and peaceful Indo-Pacific region. The partnership can help prevent conflict and promote regional stability, promoting economic development and progress.

Major areas of disagreement among Nations…

However, the economic ties between the United States and India have not been without challenges. One of the major areas of disagreement has been India’s restrictions on foreign investment in certain sectors, such as retail and e-commerce. The United States has been urging India to ease these restrictions, arguing that they limit the potential for economic growth and job creation.

Another area of concern has been India’s intellectual property laws, which the United States has criticized for being weak and not providing adequate protection to U.S. companies. In 2019, the U.S. Trade Representative’s office put India on its “priority watch list” of countries that do not adequately protect intellectual property rights.

Despite these challenges, the United States and India continue to work towards strengthening their economic ties. In 2019, the two countries held their first-ever 2+2 ministerial dialogue, which brought together the foreign and defense ministers of both countries. The dialogue covered a range of issues, including defense, energy, and trade.

Relationship the key to next era of globalisation..

In conclusion, the financial relations between the US and India are vital for shaping the future of globalisation, Is the relationship between US and India the key to next era of globalisation…