India–United States Relations IAS Target

India-United States Relations

21 Jul 2020

Category : International Relations

Topic: India-United States Relations

India–United States relations where former is the largest democracy of the world and latter oldest democracy of the world. Prominent leaders of India's freedom movement had friendly relations with the United States of America which continued even after independence. After Independence Pakistan become USA's close ally and India cultivated strategic and military relations with the USSR to counter Pakistan–United States relations. In 1961, India became a founding member of the Non-Aligned Movement to avoid involvement in the Cold War. The USA's support for Pakistan during the Indo-Pakistani War of 1971, affected India-USA relations until the dissolution of the Soviet Union in 1991.

Non-align Movement (NAM)

The NAM is a forum of 120 developing world states that are not formally aligned with or against any major power bloc. After the UN, it is the largest grouping of states worldwide. The NAM was established in 1961 in Belgrade, Yugoslavia through an initiative of the Indian Prime Minister Jawaharlal Nehru and the Yugoslav President Josip Broz Tito.

The purpose of this organization was:

  • to ensure "the national independence, sovereignty, territorial integrity and security of non-aligned countries"
  • Struggle against imperialism, colonialism, neo-colonialism, racism, and all forms of foreign aggression, occupation, domination, interference or hegemony as well as against great power and bloc politics.

The NAM helped to avert any war escalation when world was grappling power politics of two bloc led by USA and Soviet Union. Membership is particularly concentrated developing or Third World countries, though NAM also has a number of developed nations. After USSR dissolution and ending of cold war politics, India diversify its foreign relationship and developed closer ties with the United States.

India and USA relations strengthened through:

  • Increase in bilateral trade & investment,
  • Co-operation on global security matters,
  • 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)
  • Support for admission in the Nuclear Suppliers Group and joint-manufacturing through technology sharing arrangements
  • In 2016, India and United States signed the Logistics Exchange Memorandum of Agreement and India was declared a Major Defense Partner of the United States.

Importance of India to USA

India is the major player in south-asia which is core interest of USA. Geographically, India sits between the two most immediate problematic regions for U.S. national interests. The arc of instability where terrorism and militant spread from North Africa goes through the Middle East, and proceeds to Pakistan and Afghanistan ends at India’s western border. The Indian Ocean is home to critical global sea-lines of communication, with perhaps 50 percent of world container products and up to 70 percent of ship-borne oil and petroleum traffic transiting through its waters. This region also important for China, which fear of choking important sea line of communication from where all oil supply of China in the backdrop of new arrangement of QUAD and new global partnership in the wake of expansionistic attitude of China. India’s growing national capabilities give it ever greater tools to pursue its national interests to the benefit of the United States.

India has the world’s

  • third-largest Army,
  • fourth-largest Air Force, and
  • fifth largest Navy.
All three of these services are modernizing and USA see India as major defense buyer of its arms and huge market for USA companies. India’s broad diplomatic ties globally, its aspirations for UNSC permanent membership, and its role in international organizations such as the IAEA makes New Delhi an especially effective voice in calls to halt proliferation. India impeccable record in arms make natural choice of USA to prevent proliferation, where Iran, North Korea and Pakistan become threat of global peace. India’s position against radicalism and terrorism corresponds with that of the United States. India’s English-speaking and Western-oriented elite and middle classes comfortably partner with their counterparts in U.S. firms and institutions, including more than 2.8 million Indian Americans. The U.S. higher education system is an incubator of future collaboration, with more than 100,000 Indian students in American universities.
India-USA both trying to seal trade deal and hopeful for early agreement. As India modernizes and grows it will spend trillions of dollars on infrastructure, transportation, energy production & distribution, and defense hardware. U.S. firms can benefit immensely by providing expertise and technology that India will need to carry out this sweeping transformation. New Delhi has positive relations with critical states in the Middle East, in Central Asia, in Southeast Asia, and with important middle powers such as Brazil, South Africa, and Japan—all of the strategic value to the United States. India’s soft power is manifest in wide swaths of the world where its civil society has made a growing and positive impression. Indian democracy has prospered despite endemic poverty; extraordinary ethnic, religious, and linguistic diversity; and foreign and internal conflicts.

Importance of USA to India

  • America remains the indispensable pacify power in Asia amid its armed and political power plan and promises to the county.
  • The twentieth century abided witness to multigeneration U.S. determinations to thwart the appearance of any antagonistic hegemon on the Eurasian landmass, a purpose that the United States go on to accomplish at the moment with the aid of its Asian associates.
  • China has decided to disregard international limitation standards, an outline of conduct that the United States has diligently requested to limit.
  • India will be well equipped to defend its general welfares in Pakistan and Afghanistan under the management of the United States.
  • China hostile to democratic system and supported military and dictatorship in many countries. So India and USA are natural partner to give voice to people against states which not respect human and democratic rights
  • China disregard with rule of law like:
    • Currency manipulation,
    • No market accesss
    • Theft of intellectual knowledge etc
    So both countries India and USA have common interest to defend global order based on rule of law.

Quadrilateral Security Dialogue (QSD or QUAD)

It is an informal strategic dialogue between the United States, Japan, Australia and India that is maintained by talks between member countries. The dialogue was paralleled by joint military exercises of an unprecedented scale, titled Exercise Malabar. The diplomatic and military arrangement was widely viewed as a response to increased Chinese economic and military power and China expansion and disregard of rule of law and unilateral action in South China Sea.
The Chinese government responded to the QUAD by issuing formal diplomatic protests to its members. The first iteration of QSD ceased following the withdrawal of Australia during the tenure of prime minister Kevin Rudd, reflecting Australian concerns about joining a perceived alliance against China with two of its historic adversaries, Japan and India. India, Japan, and the United States continue to hold joint naval exercises through Malabar. However, during the 2017 ASEAN Summits all four former members rejoined in negotiations to revive the quadrilateral alliance.

India-USA defense cooperation

  • Exercise Malabar is a trilateral naval exercise involving the United States, Japan and India as permanent partners. Originally begun in 1992 as a bilateral exercise between India and the United States, Japan became a permanent partner in 2015. Past non-permanent participants are Australia and Singapore.
  • A joint military exercise, Yudh Abhyas conduct annually between India and the US armies.
  • The US and India have a common interest in the free flow of commerce and resources, including through the vital sea lanes of the Indian Ocean. In recent years, India has conducted large joint military exercises with the US in the Indian Ocean.

The U.S. has four "foundational" agreements that it signs with its defence partners.

The General Security Of Military Information Agreement (GSOMIA) GSOMIA was signed by India and the U.S. in 2002. The agreement enables the sharing of military intelligence between the two countries and requires each country to protect the others' classified information.
The Logistics Exchange Memorandum of Agreement (LEMOA), LEMOA was signed by the two countries on 29 August 2016. The LEMOA permits the military of either country to use the others' bases for re-supplying or carrying out repairs. The agreement does not make the provision of logistical support binding on either country, and requires individual clearance for each request.
The Communications Compatibility and Security Agreement (COMCASA) COMCASA was signed during the inaugural 2+2 dialogue in September 2018. It is an India-specific variant of Communications and Information Security Memorandum of Agreement (CISMOA) that enables the two countries to share secure communication and exchange information on approved equipment during bilateral and multinational training exercises and operations.
The Basic Exchange and Cooperation Agreement (BECA) BECA has not yet been signed. It permits the exchange of unclassified and controlled unclassified geospatial products, topographical, nautical, and aeronautical data, products and services between India and the US National Geospatial-Intelligence Agency (NGA).

India designated as major US defence partner

  • India has been designated as a major defence partner of the United States.
  • It puts India on a par with the closest allies and partners of the US.
  • So far, US has bestowed this status upon the North Atlantic Treaty Organisation (NATO) countries and the US treaty allies such as Japan, South Korea, Australia, New Zealand and Philippines.
  • India’s Major Defence Partner status has been made a part of the India Amendment in the National Defence Authorization Act (NDAA), 2017 of US.
  • It will facilitate US to transfer of advanced defence technology to India.

India-USA defence trade

  • Defence relationship has emerged a major pillar of India-US strategic partnership and a key driver of the overall bilateral relationship since 2005.
  • In short time, defence trade shot from $1 billion to over $18 billion.
  • The US now authorizes the sharing of sensitive technologies with India on a level commensurate with America’s closest allies.
  • There has also been a substantial deepening of the security partnership, with a focus on counter-terrorism cooperation and intelligence sharing.
  • USA, wants to make India as one of the major defence partners for which USA want to sell highly technologically weapons because India is huge market for world companies to sell highly advanced arms
  • Many USA companies want to set up their facilites in India to manufacture weapon locally so india could be new hub for USA corporates (Example F-16 by Lockheed martin)
  • India and the United States have launched a Defence Technology and Trade Initiative (DTTI) aimed at simplifying technology transfer policies and exploring possibilities of co-development and co-production to invest the defence relationship with strategic value.

India-USA civil nuclear partnership or 123 Agreement

The 123 Agreement signed between the United States of America and the India is known as the U.S.–India Civil Nuclear Agreement or Indo-US nuclear deal. The framework for this agreement under which India agreed to separate its civil and military nuclear facilities and to 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. An India-IAEA safeguards (inspections) agreement and the grant of an unique exemption for India by the Nuclear Suppliers Group because of India's tremendous record in arms non-proliferation. India signed an India-specific safeguards agreement with the IAEA. The deal is seen as a watershed in U.S.-India relations and introduces a new aspect to international nonproliferation efforts. 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. The 48-nation NSG granted the waiver to India allowing India to access civilian nuclear technology and fuel from other countries.
The implementation of this waiver made India the only known country with nuclear weapons which is not a party to the Non-Proliferation Treaty (NPT) but is still allowed to carry out nuclear commerce with the rest of the world. The Nuclear Suppliers Group (NSG) is a multilateral export control regime and a group of nuclear supplier countries that seek to prevent nuclear proliferation by controlling the export of materials, equipment and technology that can be used to manufacture nuclear weapons. The NSG was founded in response to the Indian nuclear test in May 1974 and first met in November 1975. The test demonstrated that certain non-weapons specific nuclear technology could be readily turned to weapons development. Nations already signatories of the Nuclear Non-Proliferation Treaty (NPT) saw the need to further limit the export of nuclear equipment, materials or technology.

India-USA Economic and Trade Relations

India-USA bilateral trade in goods and services stands at $114 billion in 2016. Both countries have made a commitment to facilitate actions necessary for increasing the bilateral trade to $500 billion. The U.S. is the One of the largest source of foreign direct investments into India and India companies also invested in USA (pharmaceuticals, software etc). There are several dialogue mechanisms to strengthen bilateral engagement on economic and trade issues, including a Ministerial level Economic and Financial Partnership.
For greater involvement of private sector in the discussions on issues involving trade and investment, there is a bilateral India-USA CEO’s Forum. Among large Indian corporations having investments in the U.S. include Reliance Industries Limited, Tata Consultancy Services, Wipro, Essar America, Piramal, Mahindra, Lupin, Sun Pharma, etc. There are several dialogue mechanisms to strengthen bilateral engagement on economic and trade issues, including a Ministerial Level Economic and Financial Partnership and a Ministerial Trade Policy Forum.
India and the US have set up a bilateral Investment Initiative in 2014, with a special focus on facilitating FDI, portfolio investment, capital market development and financing of infrastructure. US firms will be lead partners in developing Allahabad, Ajmer and Vishakhapatnam as Smart Cities. USAID will serve as knowledge partner for the Urban India Water, Sanitation and Hygiene (WASH) alliance to help leverage business and civil society (Gates Foundation) to facilitate access to clean water, hygiene and sanitation in 500 Indian cities.

Engagement on Energy and Climate Change:

The U.S.-India Energy Dialogue was launched in May 2005 to promote trade and investment in the energy sector.

There are six working groups in

  • oil & gas,
  • coal,
  • power and energy efficiency,
  • new technologies& renewable energy,
  • civil nuclear co-operation and
  • sustainable development under the Energy Dialogue.

Investment by Indian companies like Reliance, Essar and GAIL in the U.S. natural gas market is ushering in a new era of India-U.S. energy partnership. The U.S. Department of Energy has so far given its approval for export of LNG from seven liquefaction terminals in the U.S., to countries with which the U.S. does not have a free trade agreement (FTA) - with two of these five terminals, the Indian public sector entity, Gas Authority of India Limited (GAIL) has offtake agreements. The Government of India have established the Joint Clean Energy Research and Development Center (JCERDC) designed to promote clean energy innovations.
India and the U.S. are advancing cooperation and dialogue on climate change through a high-level Climate Change Working Group and a Joint Working Group on Hydroflurocarbon. A new U.S.-India Partnership for Climate Resilience has been agreed to, in order to advance capacity for climate adaptation planning, as also a new U.S. India Climate Fellowship Program to build long-term capacity to address climate change-related issues. To further collaboration in the area of clean energy and climate change, the two sides announced finalization of a package to provide concessional finance to support clean energy projects on track, to coordinate U.S. Government efforts on clean energy investment in India jointly with leading Indian financial institutions, and to provide liquidity to small scale renewable energy investors.
Even though India is committed for the Environment protection cause under Paris climate change 2015, but USA change line after Trump becoming President. USA reluctant to adhere Paris meeting commitment instead want to promote fossil fuel production and consumption. While Western block committed for 100billion $ fund, technology trasfer and carbon reduction. But western countries not show interest and even reluctant to sharing technology that promote green technology on the pretext of Intellectual property protection. But India ready to follow 2015 Paris meeting in letter and spirit and International solar alliance meeting is the example of India commitment for the humanity and environment.

H1B visa controversy

With a hard stance on immigration, the High-Skilled Integrity and Fairness Act of 2017 that will overhaul the popular H1B and L1 visas has been tabled in the US Congress. This reform bill, would have significant changes in the way the H1B visas are granted to companies and allocated to employees by them. Some of the worst hit by the new H1B bill will be Indian companies such as Infosys, TCS, and Wipro, as well as US tech giants like Apple, Facebook and Google, who use the H1B visa to fill positions that cannot be filled by American workers.

H1B visa

The H1B visa is a non-immigrant visa that allows companies to employ foreigners for a period of up to six years. This visa is aimed at helping companies employ foreigners in positions for which they have been unable to find American employees. The minimum salary for an employee holding the H1B visa is set at $60,000 per year. H1B visa holders are allowed to apply for permanent residency in the US as well as buy or sell property in the country.

H1B controversy

The aim of the H1B visa programme was to supplement the US workforce with high-skilled workers to do jobs that Americans are not skilled to do, not to replace the US workers. But over time, govt found that many companies use the H1B visa to replace American workers with foreign ones because of lower salary offered to them.

Changes in the new H1B bill

  • Increasing the minimum salary for visa holders to be $130,000, more than double the current minimum.
  • The new visa reform bill also eliminates the category of lowest pay, and raises the salary level
  • The H1B visa bill removes the ‘per country’ cap for employment-based immigrant visas.
  • It sets aside 20% of the annually allocated H1B visas for small companies and startup employers (50 or fewer employers) to ensure small businesses have an opportunity to compete for high-skilled workers.
  • The Bill encourages companies to recruit American workers. This provision would crack down on outsourcing companies that import large numbers of H-1B and L-1 workers for short training periods and then send these workers back to their home country to do the work of Americans.
  • It explicitly prohibits replacement of American workers by H1-B or L-1 visa holders.

Consequences of reformed H1B visa bill

  • Among the biggest recipients of H1B visas each year are Indian IT firms, such as Infosys, TCS, Wipro, HCL, Igate, Cognizant, as well as global giants IBM, Accenture, Microsoft, Google, and Amazon, among others.
  • If this bill passes, they will to bear significantly higher costs for employing highly-skilled foreign citizens.
  • The visa reform may impact smaller companies adversely because these small cannot afford incurring high costs to employ skilled workers.
  • It will eliminate the Master’s Degree exemption for employers.
  • The new rules may bring back restrictions on the spouses of H1B visa holders who until recently were not allowed to work in the US and these draconian restrictions were seen as career killers, but in 2015, those work restrictions were removed to allow H4 visa holders to legally work.

Implication of this reformed bill on the USA

Skilled foreign workers who come to work in the United States on H1-B visas don’t just directly supplement the US IT industry with specialized skillsets, they also contribute indirectly to other industries in the US. Often H1-B workers bring their families along and thereby bring additional business for other industries like real estate, Banking, hospitality, to name a few. The effects of this announcement will impact the GDP and the overall business economy and growth of US, there is no denying that this will be a dampener to the spirit of innovation and entrepreneurship. In midst of all this, it’s critical to remember that most US-based companies (including many Fortune 500s) are highly dependent on IT Services Providers. These companies actively outsource for both skills and cost advantage. Changes in the H1-B visa arrangement will add immense cost pressures on these organizations.

India's answer to USA on reformed bill

The Indian government appears to have taken notice of the reports but it is unclear if it’s going to escalate the matter as a diplomatic issue. India has been largely silent on Trump administration’s recent immigration ban barring foreign nationals from seven Muslim-dominated countries. However, India’s interests and concerns have been conveyed both to the US administration and the US Congress at senior levels.

India-USA WTO tussle

Major issues of India at WTO?
In the recent times India has been at the centre of issues plaguing the developing country. It has been taking a stand at WTO to protect its vast vulnerable population and its industry.
Shrimp Turtle Case The United States had implemented a ban on shrimp from countries whose fishing fleets did not have special turtle excluder devices,as:
  • to prevent endangered sea turtles from being killed in the shrimping process. India, Malaysia, Thailand, and Pakistan claimed that the law was a disguised restriction on free trade and challenged the measure in the WTO's dispute resolution process.
The dispute resolution panel deciding the case said that the shrimp ban was not justified because environmental protection measures could not be used to undermine the overall multilateral trading system.
The appellate body went on to say that the way the United States implemented its shrimp ban, however, was discriminatory, and ordered the United States to end the ban.
Poultry Case In 2012, the United States requested consultations with India with respect to the prohibitions imposed by India on the importation of various agricultural products from the United States purportedly because of concerns related to Avian Influenza.
The United States complained that India’s AI measures amounted to an import prohibition that was not based on the relevant international standard or on a scientific risk assessment. In its ruling on October 14, 2014, the WTO panel had said that India's measures arbitrarily and unjustifiably discriminate between Members.
Subsidy for public stock keeping India's National Food Security Program was under the scanner for violating WTO cap on subsidies. India threatened to not sign the Trade Facilitation Agreement until it could get an agreement on the public stock keeping.
WTO members had agreed not to challenge India and other developing countries for breaching WTO rules on stockpiling until 2017 while talks continued on a permanent solution. Finally, the U.S. clarified that it and others won't challenge India even beyond 2017 if no solution is reached by then. India ratified the trade facilitation agreement finally.
Domestically source solar cell module disputes India's National Solar Mission which was launched in 2010 is an ambitious program to promote solar power in India. The mission received fresh impetus in 2015 when the new government raised the target from 20,000 MW to 100,000 MW by 2022.

The Indian government has agreed to incentivize the production of solar energy within the country. The government under the programme agrees to enter into long-term power purchase agreements with solar power producers, effectively guaranteeing the sale of the energy produced and the price that such a solar power producer could obtain. However, a solar power producer, to be eligible to participate under the programme, is required compulsorily to use certain domestically sourced inputs, namely solar cells and modules for certain types of solar projects. In other words, unless a solar power producer satisfies this domestic content requirement, the government will not guarantee the purchase of the energy produced.
In 2013, the U.S. brought a complaint before the WTO arguing that the domestic content requirement imposed under India's national solar programme is in violation of the global trading rules. In response to the WTO case, India has offered to alter NSM’s “buy-local” provisions by restricting it to solar equipment for its own use, such as railways and defence, and not for reselling the electricity. This offer plays within WTO rules exception wherein the government can favour domestic products in procurement policies if the procurement is “not with a view to commercial resale”.

Generalized System of Preferences (GSP) The Generalized System of Preferences (GSP) is a U.S. trade program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories. GSP was instituted on January 1, 1976
Purpose of GSP The purpose of GSP was to give development support to poor countries by promoting exports from them into the developed countries. GSP promotes sustainable development in beneficiary countries by helping these countries to increase and diversify their trade with the United States.
Advantages of GSP Indian exporters benefit indirectly – because their products get duty free entry in USA market. Reduction or removal of import duty on an Indian product makes it more competitive to the importer. This tariff preference helps new exporters to penetrate a market and established exporters to increase their market share and to improve upon the profit margins, in the donor country.
USA problem with the current system of GSP: USA govt call this in not level playing field because “unequal tariffs” from India rests on the trade relationship in favour of India: Indian exports to the U.S. in 2017-18 stood at $47.9 billion, while imports were $26.7 billion (USA consider this trade deficit due GSP). India criticized for range of unfair trading practices– decision on data localization for all companies operating in India, and the more recent tightening norms for FDI in e-commerce have aggravated the situation. Sanitary and phytosanitary (SPS) barriers in India limit U.S. agricultural exports.
Implication of GSP removal The GSP removal will leave a reasonable impact on India as the country enjoyed preferential tariff on exports worth of nearly $ 5. 6 billion under the GSP route out of the total exports of $48 bn in 2017-18. Removal of GSP indicate a tough trade position by the US; especially for countries like India who benefited much from the scheme. India is the 11th largest trade surplus country for the US and India enjoyed an annual trade surplus of $ 21 bn in 2017-18. and trump administration want to eliminate trade surplus and balance trade with trade surplus countries.

Educational cooperation

India is learning from the U.S. experience in community colleges in order to meet our demands for skill-development. It has been agreed to collaborate with U.S. institutions in the area of Technology Enabled Learning and Massive Open Online Courses (MOOCs) to extend the reach of education in India. Under the Global Initiative of Academic Networks (GIAN) launched by India, up to 1000 American academics will be invited and hosted each year to teach in Indian universities at their convenience. The two sides are also collaborating to establish a new Indian Institute of Technology in Ahmedabad.

Space:

A bilateral Joint Working Group on Civil Space Cooperation provides a forum for discussion on joint activities in space, including:
  • Exchange of scientists;
  • OCM2, INSAT3D collaboration;
  • Cooperation on Mars mission;
  • Nano-satellites;
  • Carbon /ecosystem monitoring and modeling;
  • Feasibility of collaboration in radio occultation:
  • Earth Science Cooperation:
  • International space station;
  • Global navigation satellite systems;
  • L&S band SAR;
  • Space exploration cooperation;
  • Space debris mediation.

Mission Chandrayaan-2 pronunciation is the second lunar exploration mission developed by the Indian Space Research Organization (ISRO), after Chandrayaan-1. It consisted of a lunar orbiter, the Vikram lander, and the Pragyan lunar rover, all of which were developed in India. The main scientific objective is to map and study the variations in lunar surface composition, as well as the location and abundance of lunar water.
The spacecraft was launched on its mission to the Moon from the second launch pad at the Satish Dhawan Space Centre on 22 July 2019 at 2.43 PM IST (09:13 UTC) by a Geosynchronous Satellite Launch Vehicle Mark III (GSLV Mk III).The craft reached the Moon's orbit on 20 August 2019 and began orbital positioning manoeuvres for the landing of the Vikram lander. Vikram and the rover were scheduled to land on the near side of the Moon, in the south polar region at a latitude of about 70° south at approximately 20:23 UTC on 6 September 2019 and conduct scientific experiments for one lunar day, which approximates two Earth weeks.
However, the lander deviated from its intended trajectory starting at 2.1 kilometres (1.3 mi) altitude, and had lost communication when touchdown confirmation was expected. NASA help ISRO to find Vikram but they unsuccessful to establish communication with the lander. The orbiter, part of the mission with eight scientific instruments, remains operational and is expected to continue its seven-year mission to study the Moon.

Science & Technology (S&T):

The India-U.S. S&T cooperation has been steadily growing under the framework of U.S.-India Science and Technology Cooperation Agreement signed in October 2005. There is an Indo-U.S. Science & Technology Joint Commission, co-chaired by the Science Advisor to U.S. President and Indian Minister of S&T. The U.S. attended as the partner country at the Technology Summit 2014 at New Delhi.
In 2000, both the governments endowed the India-U.S. Science & Technology Forum (IUSSTF) to facilitate mutually beneficial bilateral cooperation in science, engineering, and health. The U.S.-India Science & Technology Endowment Fund, established in 2009, under the Science and Technology Endowment Board promote commercialization of jointly developed innovative technologies with the potential for positive societal impact.
Collaboration between the Ministry of Earth Sciences and U.S. National Oceanographic and Atmospheric Administration has been strengthened under the 2008 MOU on Earth Observations and Earth Sciences. A "monsoon desk" has been established at the U.S. National Centers for Environmental Prediction. India's contribution of $250 million towards Thirty-Meter Telescope Project in Hawaii and Indian Initiative in Gravitational Observations (IndiGO) with U.S. LIGO Laboratory are examples of joint collaboration to create world-class research facilities.

Heath collaboration

Under the 2010 U.S.-India Health Initiative, four working groups have been organized in the areas of:
  • Non-Communicable Diseases,
  • Infectious Diseases,
  • Strengthening Health Systems and Services,
  • Maternal and Child Health.
U.S. National Institutes of Health, the Indian Council of Medical Research, and India's Department of Biotechnology have developed a robust relationship in the biomedical and behavioral health sciences, research related to HIV/AIDS, infectious diseases, diabetes, cardiovascular diseases, eye disease, hearing disorders, mental health, and low-cost medical technologies. In the first meeting of the Health Dialogue in September 2015 in Washington DC, both sides agreed to collaborate institutionally in the new areas of mental health and regulatory and capacity-building aspects of traditional medicine.

The United States Chamber of Commerce industry analyzing intellectual property protection in 50 countries, as a prelude to the annual US government list of countries seen as not adequately protection US companies’ IP rights. USTR frequently urge India to make laws that protect pharma companies interest so that they could innovate and R&D in new life saving drugs and devices. USTR not happy with Indian regulation which slash drug prices, on the other hand Indian govt stated that, its position in line with WIPO guideline and serve public interest. Poor need cheap drugs for better health which is also in consonance with Sustainable development goal (2015-30). United States Trade Representative (USTR) keep India on the Priority Watch List.
It appears highly likely that in strategic, political, security, defence and economic terms, relations between India and the USA will continue their upward trajectory with USA administration. Impact of USA’s relations with Pakistan over India is likely to be beneficial and positive. Geopolitical manoeuvres can have significant impact on India-USA relations, however, it would remain to be multi-faceted and an “indispensable partnership”