USA –INDIA AN ERA OF NEW FRIENDSHIP

INTRODUCTION

As every one knows USA is the world’s greatest powerful country and INDIA is the largest
democratic country. In recent years INDIA and US has become a good friend. US consider their
future role in the world and India represents a singularly positive opportunity to USA due to the
rise of a democratic and increasingly powerful India. That is why building a close U.S.-India
partnership should be one of the United States' highest priorities for the future. US share an
abundance of political, economic, and military interests with India today. In an age of anti-
Americanism, according to the most recent Pew Global Attitudes survey, nearly six in ten
Indians view the United States favorably. In the past decade, both President Bill Clinton and
President George W. Bush recognized this opportunity and acted to construct a completely new
foundation for U.S. ties with India. US – INDIA relationship now is fastest-developing
friendship with any major country in the world. Both countries are working together effectively
to counter terrorism, drug trafficking, and nuclear proliferation. In India, both the ruling Indian
National Congress and the opposition Bharatiya Janata Party (BJP) have worked for over a
decade to elevate India's ties with the United States. Former US President Bush called for the
two countries to jump-start their relationship in four strategic areas: civil nuclear energy, civilian
space programs, high-tech commerce, and missile defense. In July2005 when Prime Minister shri
Manmohan singh visited Washington than former US president bush said that the United States
is prepare to offer India the benefits of full civil nuclear energy cooperation and US will help
INDIA to construct new power plants and will provide nuclear fuel and technology to run the
nuclear plants. In New Delhi in March 2006, President Bush and Prime Minister Singh
announced the realization of this vision through the U.S.-India Civil Nuclear Cooperation
Initiative. The U.S.-India Friendship Council was formed in 2005 with the sole purpose of
ratifying the U.S.-India civil nuclear deal. It has been advocating for passage for implementing
legislation since 2006. In recent years there are a lot of agreements and partnership between
INDIA and US related with nuclear energy, education, terrorism, trade, environment, health,
agriculture, security, science and technology, space programs etc.
INDO-US CIVILIAN NUCLEAR AGREEMENT-

The Indo-U.S. civilian nuclear agreement, known also as the Indo-U.S. nuclear deal, refers to a
bilateral accord on civil nuclear cooperation between the United States of America and the
Republic of India. The framework for this agreement was a July 18, 2005 joint statement by
Indian Prime Minister Manmohan Singh and then U.S. President George W. Bush, under which
India agreed to separate its civil and military nuclear facilities and place all its civil nuclear
facilities under International Atomic Energy Agency (IAEA) safeguards and, in exchange, the
United States agreed to work toward full civil nuclear cooperation with India. The nuclear deal
was widely seen as a legacy-building effort by President Bush and Prime Minister Singh. On
August 1, 2008, the IAEA approved the safeguards agreement with India, after which the United
States approached the Nuclear Suppliers Group (NSG) to grant a waiver to India to commence
civilian nuclear trade. On October 1, 2008 the US Senate also approved the civilian nuclear
agreement allowing India to purchase nuclear fuel and technology from the United States. U.S.
President, George W. Bush, signed the legislation on the Indo-US nuclear deal, approved by the
U.S. Congress, into law, now called the United States-India Nuclear Cooperation Approval and
Non-proliferation Enhancement Act, on October 8, 2008. The agreement was signed by Indian
External Affairs Minister Pranab Mukherjee and his counterpart Secretary of State Condoleezza
Rice, on 10 October.

HYDE ACT AND 123 AGREEMENT-

The Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006, also
known as the Hyde Act, is the U.S. domestic law that modifies the requirements of Section 123
of the U.S. Atomic Energy Act to permit nuclear cooperation with India. The 123 agreement
defines the terms and conditions for bilateral civilian nuclear cooperation, and requires separate
approvals by the U.S. Congress and by Indian cabinet ministers. According to the Nuclear Power
Corporation of India, the agreement will help India meet its goal of adding 25,000 MW of
nuclear power capacity through imports of nuclear reactors and fuel by 2020.
BILATERAL AVIATION SAFETY AGREEMENT BETWEEN INDIA AND
USA-

India and USA are working on a Bilateral Aviation Safety Agreement (BASA), which would
lead to mutual acceptance of aeronautical products/parts developed in either country. Since
aeronautical products are now being designed and manufactured in India, a need was felt for
international acceptance of such products. The BASA process with a limited scope is expected to
be completed by end of year 2010.

US-INDIA AVIATION COOPERATION PROGRAMME (ACP)

The US-India Aviation Cooperation Program (ACP), a public-private partnership between the
U.S. Trade Development Agency (USTDA), the U.S. Federal Aviation Administration (FAA)
and U.S. aviation companies, has been established to provide a forum for unified communication
between the Government of India and U.S. public and private sector entities in India. The ACP is
designed to work directly with the Indian Government to identify and support India’s civil
aviation sector modernization priorities.

The ACP’s specific objectives are to: (i) promote enhanced safety, operational efficiency and
system capacity in the Indian aviation sector; (ii) facilitate and coordinate aviation industry
training and technical ties between the U.S. and India; and (iii) strengthen overall US-India
aviation cooperation. Funding for training and technical assistance programs is provided by
USTDA and the in-kind support will be provided by FAA and US aviation companies.

Through the mechanism of ACP, Indian and US officials has identified specific areas for
technical co-operation, which include:

· Air traffic flow management

India and US signed umbrella agreement on Science and Technology to facilitate collaboration
between scientists of both the countries in several areas ranging from health to space technology.
This new agreement is expected to accelerate cooperation between Indian and US scientists
working in government agencies, private sector and academia according to Indian diplomatic
sources. The areas for collaboration covered basic sciences, space, energy, nanotechnology, and
health and information technology. India and the US have had a long tradition of scientific
cooperation, with the Indian Institute of Technology, Kanpur, and the Punjab Agricultural
University, Ludhiana, as highly-successful testimonials of this collaboration. An Indo-US
science and technology agreement was first mooted in 1993, but it ran into trouble over
differences relating to intellectual property rights provisions.

Indo-USA Trade Relations-

Economic Reforms introduced since 1991 have radically changed the course of the Indian
economy and led to better growth rates, higher investment and trade flows and accelerated
decline in income poverty. The effects of these reforms on trade and investment relations with
the United States have been profound. Though, the trade between the United States and India is
relatively small, it has risen sharply over the years. In terms of India's major trading partner,
USA continues to lead. However, India's share in US trade is 24th in US export and eighteenth in
US imports. The two countries have been making efforts to strengthen institutional structure of
bilateral economic relations. Signing of "India-US Economic Dialogue" by Indian Prime
Minister Atal Bihari Vajpayee and US President Bill Clinton in 2003 aims at deepening the Indo-
American partnership through regular dialogue and engagement. India's sizable population and
growing middle and higher income class makes India a potentially large market for U.S. goods
and services. According to the figure from government sources, U.S. exports to and imports from
India in 2003, totaled US $5.0 billion and US $13.1 billion, respectively. India's main exports to
US are precious stones, metals (worked diamonds & gold jewellery), miscellaneous textile
article, Fish and seafood (frozen shrimp), Textile floor coverings, Iron/steel products,
Organic chemicals and Machinery (taps, valves, transmission shafts, gears, pistons, etc)

India imports sophisticated machinery (computers and components, gas turbines, telecom, etc),
Electrical machinery (recording/sound media), Medical and surgical equipment/instruments,
Aircraft, spacecraft (small aircraft), Precious stones, metals (diamonds, not mounted or set),
jewellery, Organic chemicals, Plastic, Cotton and cotton waste and Wood pulp, etc.

INVESTMENT-

On investment front, USA covers almost every sector in India, which is open for private
participants. Both government-to-government level and business-to-business level conduct
regular interactions with each other to promote and strengthen the trade and economic
interactions between the two countries. The US investor community is today increasingly sharing
confidence in the future of the Indian economy. Several areas like infrastructure, IT, Telecom
sector, energy and other knowledge industries such as pharmaceuticals and biotechnology
possess immense potential for progressing economic cooperation between India and the
US.Among the major multi national corporations of USA that are doing a profitable business in
India are- General Electric, Whirlpool Ford (India), 3M, Tecumseh Products (India) Limited,
Pepsi, Proctor and Gamble (India), Microsoft, Intel, IBM Corporation, EDS, Sun Microsystems,
Adobe Systems Inc, Agilent Technologies Inc, Oracle Corporation, Texas Instruments.

A very important aspect of US India economic relations comes with the emergence of Business
Process Outsourcing, where in many US companies are reaping the advantages offered by India's
IT sector. India offers a large pool of trained, English speaking personnel, which offers huge cost
benefits to the US MNCs. In recent years India has also made progress in expanding their
investment base in the United States of America. IT sector, Tata Infotech, Infosys and WIPRO
have large operations based in the US.

Another important aspect of India-US economic relations is the huge number of people of Indian
origin residing in the US. These people according to some surveys conducted in the US,
contribute a lot to US economy and are among the most highly educated class in America.
Relaxations in Visa norms by the US administration are considered as a vital step to boost the
existing relations between the two countries.
US INDIA AGAINST TERRORISM-

USA and INDIA are working together to stop terrorism mainly after 11 Sep, 2001 attack on USA
by al Qaeda because INDIA has a dominant economic and military power in South Asia. The
United States and India share a particular interest in defeating the Taliban and al Qaeda in
Afghanistan and in helping to support that country's fledgling democracy. India has made
important contributions there. It has pledged over $750 million for reconstruction, making it the
largest South Asian donor to the government of President Hamid Karzai. It has helped renovate
and build hospitals, granaries, and schools; it is training Afghan parliamentary officials in
governance and parliamentary processes; and it has committed to building dams, roads, power
projects, and a new parliament building. India's continuing involvement in Afghanistan is
essential to that country's stabilization and long-term success, and cooperation between the
United States and India in Afghanistan has been close and encouraging. In Sri Lanka, the United
States and India have come together to call for a political settlement with the Tamil minority
through a power-sharing agreement so as to end the island's bloody conflict.

HEALTH SECTOR US INDIA RELATIONSHIP-

Together, the United States and India have also made real advances in cooperation on health
issues. India is an important participant in the International Partnership on Avian and Pandemic
Influenza, which has helped put avian flu on the national agendas of countries around the world.
India and the United States are also actively involved in fighting HIV/AIDS and other infectious
diseases. We are working together to eradicate polio and to promote maternal and child health.