Issues under discussion during the first strategic dialogue during June 2010 included Counter Terrorism, Disarmament and Non-Proliferation, Energy Security, Clean Energy and Climate Change, High Technology and Trade and Economic Relations. No bilateral relationship is permanent in the long run. Still, the Indo-US arrangement has withstood for the last decade or so

by Dr Ajey Lele

In 2005, the process of Indo-US nuclear deal could be said to have started with a new era of India-US strategic cooperation. However, the process was not simple and the formalisation of the deal went through various phases of negotiations. Much of the debate took place both in India and the US on issues related to granting special nuclear status to India and possibly India joining a pro-US camp.

Nevertheless, in the initial stages of negotiations itself, the US negotiators realised that India will not be a ‘pushover’ and unlikely to buckle down to any pressures. India was also much aware of its own impeccable record in the area of arms control and disarmament. It was also clear that the US was keen to ensure that their dying nuclear industry would get a fillip. India was fully aware of the economic interest of the US.

Now in the present era, with Mr Trump being at the forefront this interest is going to increase. Hence, it is important to view the so-called ‘special relationship’ between Indian and the US through an economic prism too.

The process of negotiation and implementation for the Indo-US nuclear deal took almost five years. The civil nuclear cooperation agreement concluded in 2008. The official start of first Indo-US strategic dialogue took place at Washington during Jun 2010. Only by end 2010, the US removed nine Indian space and defence-related companies including those from Indian Space and Research Organisation (ISRO) and Defence Research and Development Organisation (DRDO) from its export control ‘Entity List’. It is important to note that space technology falls in the category of munitions list as per the US system.

No bilateral relationship is permanent in the long run. Still, the Indo-US arrangement has withstood for the last decade or so. It is not only the present political dispensation from the US with which India has struck a chord with. During 2015, President Barack Obama was the chief guest for the Republic Day parade at New Delhi.

Over the years the relationship between these two mature democracies has evolved significantly. During the Cold war period owing to India refusing to get into any power blocks, the US was always cautious while dealing with India. And, it was an open secret that the US was unhappy about India’s closeness with the Soviets. The US was extremely uncomfortable with India going nuclear. Obviously, it took a few decades for maturing the relationship. In the 21st century, during 2005, the India–US defence framework agreement was signed, followed by the US–India civil nuclear cooperation agreement. These two events could be viewed as the basis for the emergence of ‘strategic partnership’.

Issues under discussion during the first strategic dialogue during June 2010 included Counter Terrorism, Disarmament and Non-Proliferation, Energy Security, Clean Energy and Climate Change, High Technology and Trade and Economic Relations. Even today the issues for discussion remain broadly the same. Unfortunately, Trump administration has a different view on the issues of climate change and it is unlikely that both the states could put forward a strong climate change agenda. However, in other areas particularly on counter-terrorism both the states are on the same page. This became absolutely clear during the going visit of Mr Modi to the US.

There is a thin line between the strategic relationship and a defence relationship. As India’s strategic dialogues started maturing, simultaneously the relationship in the defence arena also started growing. A 10-year Framework Agreement on defence was signed between these two powers way back in 1995 and renewed in 2005.

In 2015 it was decided that for the next ten years all defence co-operation between the two would take place within this Framework. Today, India is a major defence partner of the US, a status so far been given only to the military allies of the US. There have been a significant amount of military hardware purchases by India like C-130J Hercules and the C-17 Globemaster aircraft, along with Apache attack helicopters and Chinook heavy-lift helicopters. Similarly, the Indian Navy and Army have also purchased some equipment. There has been a major boost to military trade and India has defence contracts of over $15 billion.

However, the US is fully aware that even today 50 to 60 percent of India’s defence procurement is from Russia. They actually want to reduce this gap and that is one of the reasons for a positive push for evolving a long-term strategic partnership. Unfortunately, for all these years the US is a bit reluctant to transfer military technology to India. There are initiatives like Defence Technology and Trade Initiative (DTII) which have failed to make significant progress so far. Luckily, last year the US has recognised India as a Strategic Trade Authorisation (STA-1) country. With this, there is an ease in restrictions for high-technology product sales to India. However, it is important for the US to get out of the buyer-seller relationship with India in the defence field, for the strategic and defence relationship to evolve at greater heights.

The author is Senior Fellow, IDSA, New Delhi. Views expressed are personal