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India-US Relations

30 Jun 2026
4 min

In Summary

  • India-US relations show convergence in Indo-Pacific, defense, tech, and energy, driven by shared concerns over China's rise.
  • Key divergences include US tariffs, India's Russian oil procurement, US outreach to Pakistan, and visa policies.
  • Strengthening ties requires a Bilateral Trade Agreement, eased H-1B visa norms, CAATSA waivers, and sustained institutional dialogues.

In Summary

Why in the News?

United States Secretary of State Marco Rubio visited India to strengthen bilateral ties, which have been under strain in recent times.

More on the News 

  • In the last few years, India–US relations have witnessed a downward trajectory due to policy decisions taken by the incumbent US President, such as tariff impositions, among others.

Key Areas of Convergence in India–US Relations

  • Indo-Pacific and Regional Security: A major driver of this strategic alignment is their shared concern regarding the rise of China and its expanding regional footprint.
    • Through frameworks like the Quadrilateral Security Dialogue (Quad), the two countries coordinate closely on maritime security. 
  • Defense Cooperation and Co-production: India is designated a "Major Defense Partner". Partnership shifted to co-development and co-production (e.g., INDUS-X). 
    • Key foundational agreements signed with the US include LEMOA, COMCASA, and BECA.
  • Critical Technologies and Innovation: Collaboration through TRUST i.e. Transforming the Relationship Utilizing Strategic Technology on strategic technologies (AI, semiconductors, quantum, telecom).
  • Resilient Supply Chains and Critical Minerals: Actively restructuring supply chains to reduce dependence on China; collaborating via a Critical Minerals Framework and the Indo-Pacific Economic Framework (IPEF).
  • Clean Energy and Climate Action: Collaboration through the Strategic Clean Energy Partnership (SCEP); launched a Roadmap to unlock $1 billion in multilateral financing for clean energy supply chains.
  • Space Exploration: Robust civil cooperation between NASA and ISRO. E.g., NASA-ISRO Synthetic Aperture Radar (NISAR) Mission
  • Economic and Trade Partnership: The US is among India's largest trading partners. 
  • Ensuring Energy Security:  In recent years, the U.S. has emerged as one of the largest suppliers of Liquefied Natural Gas (LNG) to India.

Major Bottlenecks in India–US Relations

  • Punitive Tariffs and Trade Coercion: In 2025, the US imposed a 50% tariff on certain Indian exports; however, it was later reduced following an interim trade agreement between the two sides.
    • This has led to fall in exports to the US. 
  • Energy Security and Russian Oil: India's persistent procurement of discounted Russian crude oil has become a major flashpoint. 
    • The US views these purchases as funding Russia's war efforts and has applied heavy economic pressure to force decoupling.
  • The Pakistan Rapprochement:  The US has recently renewed its diplomatic and military outreach to Pakistan. 
  • Strategic Autonomy vs. Alliance Expectations: Washington frequently expects India to align with its geopolitical camps. 
    • In contrast, India insists on "multi-alignment," actively engaging in Western-led groups such as the Quad while also participating in non-Western platforms like BRICS and SCO to preserve its strategic flexibility. 
  • Shifts in China Policy: Recently, the US and China agreed to build a "constructive relationship of strategic stability" based on fairness and reciprocity.
  • Immigration and Visa Policies: The US is restricting its visa norms, which is affecting Indian professionals holding H-1B visas. 
  • Imposition of Sanctions: The US has raised concerns over the acquisition of advanced weaponry, such as the S-400 air defense system from Russia by India, citing potential implications under the Countering America's Adversaries through Sanctions Act (CAATSA).

Strategies to Better Align India–US Relations 

  • Finalising Bilateral Trade Agreement (BTA): A comprehensive BTA needs to be signed to provide a stable, predictable, and mutually beneficial trade framework by addressing tariff barriers, market access, etc. 
  • Easing H-1B Visa Restrictions: The US can streamline visa processes for Indian IT professionals, researchers, etc.
  • Waiver under CAATSA: Influence of Indian-Americans can be used to get long-term exemptions for India under CAATSA to strengthen defense ties and counter regional threats. 
  • Acting as bridge power: Unlike the United States and China, India is not trapped within the same depth of industrial interdependence, nor does it seek geopolitical primacy through hierarchical dependency structures. 
    • New Delhi can increasingly position itself as a bridge power, adopting a posture that is non-Western without being anti-Western.
  • Sustaining Institutional Dialogues and Practical Cooperation: The relationship can be stabilised by continuing to manage divergences through high-level institutional channels, such as the 2+2 Ministerial Dialogue. 
    • It will help in managing divergent geopolitical interests, such as the US-Pakistan Rapprochement, Interests in the Middle East, etc. 

Conclusion

 India–US relations reflect strong strategic convergence in defence, technology, energy, and the Indo-Pacific, alongside persistent divergences in trade, visas, sanctions, and geopolitical priorities that occasionally create friction. Going forward, the partnership should be strengthened through institutionalized dialogue, a balanced trade framework, and greater respect for strategic autonomy, along with deeper cooperation in emerging technologies and resilient supply chains to ensure long-term stability.

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2+2 Ministerial Dialogue

A high-level diplomatic and security dialogue format where the Foreign Ministers and Defence Ministers of two countries meet simultaneously to discuss strategic issues and enhance cooperation.

Multi-alignment

A foreign policy strategy where a country maintains productive relationships and partnerships with multiple diverse states and blocs, rather than aligning exclusively with one. India practices multi-alignment to balance its engagements.

Strategic Autonomy

The ability of a nation to pursue its own interests and make independent decisions in critical sectors, free from undue influence or dependence on external powers. A strong manufacturing base contributes significantly to strategic autonomy.

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