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Editorial Articles


Issue no 27, 05 - 11 October 2024

PM’s Visit Signals Strategic Leap Forward in Indo-US Relations

Sujeet Yadav

Prime Minister Shri Narendra Modi's recent three- day visit to the United States was marked by a blend of diplomatic charm, strategic negotiations, and far- reaching commitments. In what can be described as a 'successful and substantial' tour, PM Modi addressed critical global fora, engaged with top business leaders, and strengthened bilateral relations with a laser focus on the future.

Prime Minister Shri Narendra Modi's engagement with top American CEOs was one of the most anticipated events during his visit. He emphasised India's ambitions of becoming the third- largest economy and urged American companies to capitalise on India's burgeoning growth story. The focus was on cutting- edge technologies such as artificial intelligence, quantum computing, and semiconductors. This meeting took place at the Lotte New York Palace Hotel, where executives from leading firms were invited to discuss potential collaborations across sectors. PM Modi positioned India as a technology leader with immense potential, inviting U.S. firms to be a part of India's digital transformation.

Semiconductor Plant in Kolkata

One of the most significant developments arising from the visit was the announcement of a landmark semiconductor fabrication plant to be established in Kolkata. The plant is being developed in partnership with a leading U.S.- based company, underlining the deepening technological cooperation between India and the U.S. This plant will focus on producing chips that are critical to powering advanced telecommunications, data centers, and green energy solutions.

The Kolkata semiconductor plant is a cornerstone in India's efforts to reduce dependency on foreign imports for critical components. It aligns with the government's 'Make in India' initiative and its mission to become self- reliant in technology production. The plant will not only reduce the import burden but also create a reliable domestic supply chain.

Moreover, the semiconductor facility is expected to generate thousands of high-skilled jobs in areas such as chip design, fabrication, and quality testing. This will create a talent pool of engineers and technologists in Kolkata, contributing to local economic growth. Additionally, the plant will act as a catalyst for ancillary industries, such as precision equipment manufacturing, Research and Development (R&D) hubs, and supply chain logistics, generating indirect employment.

India aims to position itself as a key player in the global semiconductor supply chain, which has gained increased geopolitical significance due to disruptions caused by the pandemic and geopolitical tensions.

The Kolkata plant will also focus on eco-friendly and sustainable manufacturing practices, aligning with India's broader commitment to green energy solutions. It will prioritise energy- efficient production processes and explore the integration of renewable energy sources, such as solar power, to support the plant's operational needs.

The establishment of this semi-conductor plant in Kolkata is a giant leap forward for India's ambitions in the global technology race. It not only fortifies India's position in the semiconductor supply chain but also promises to shape the country's future as a high- tech manufacturing hub.

 Strengthening Defence Ties

The defence partnership between India and the U.S. took center stage with a major announcement concerning India's procurement of 31 MQ-9B drones from General Atomics. This deal will significantly bolster India's surveillance and reconnaissance capabilities, cementing the nation's defence posture. President Mr. Joe Biden, while hailing the deal, emphasised that U.S.- India relations are now stronger than ever before.

India's participation in the Defence Acceleration Ecosystem (INDUS-X), an initiative launched in 2023, also came up during the talks. This defence initiative seeks to strengthen collaboration between the two countries, particularly in areas like advanced surveillance, missile systems, and drone technology.

Global Diplomacy at the UN: India's Voice

Prime Minister Shri Narendra Modi's speech at the 'Summit of the Future' during the UN General Assembly was a moment of significant gravitas. Speaking from the iconic podium of the UNGA, Prime Minister Shri Narendra Modi conveyed India's message of peace and cooperation to the world. He stressed that the true strength of humanity lies not in conflict but in collective effort, a message aimed at bridging divides and fostering global unity.

His address resonated with a call to reform global institutions, with a strong push for India's permanent membership in the UN Security Council. He underscored that as the world's largest democracy and a voice for 1.4 billion people, India's rightful place is at the heart of global decision- making.

Cultural Diplomacy and Return of Indian Antiquities

Beyond the strategic discussions, Prime Minister Shri Narendra Modi's trip to the U.S. also had a significant cultural component. The return of 297 invaluable Indian antiquities by the U.S. government was a moment of cultural restitution, enhancing the cultural ties between the two nations. PM Modi expressed deep gratitude to President Biden for this gesture, which marks a new chapter in India's fight against illicit trafficking of cultural heritage.

Indian Diaspora: A Pillar of US-India Relations

One of the most visually impactful moments of Prime Minister Shri Narendra Modi's visit was his address to over 13,000 Indian- Americans at the Nassau Coliseum in New York. Describing the Indian diaspora as "brand ambassadors," Modi acknowledged their contributions to strengthening India- US ties. This event symbolised the deep personal connection that PM Modi shares with the Indian community abroad and the vital role they play in the bilateral relationship.

During the event, Modi announced the opening of new consulates in Boston and Los Angeles, reflecting the growing importance of Indian- Americans in U.S. cities. These initiatives underline India's focus on expanding its diplomatic footprint in North America.

Moving Forward: India and the US as Strategic Partners

Prime Minister Shri Narendra Modi's U.S. visit was a testament to the evolving and deepening India- U.S. Comprehensive Global Strategic Partnership. From economic collaboration to defence cooperation, technology sharing, and cultural diplomacy, this visit laid the groundwork for future engagements. The talks between PM Modi and President Biden demonstrated the growing convergence on global issues. Whether it is climate action, defence collaboration, or technological advancements, both nations are poised to lead the world toward a more stable, prosperous, and secure future.

PM Modi's call for unity at the UN, his interactions with U.S. tech giants, and his vision for a future driven by technology and collaboration were central themes that defined the visit. As the two largest democracies, India and the U.S. are not just shaping their bilateral ties but also contributing significantly to global governance. This visit signified India's upward trajectory on the global stage, with the promise of many more milestones to come in its partnership with the United States.

Ready Reckoner: India-US Bilateral Relations

Overview

India and the United States share a comprehensive global strategic partnership driven by shared democratic values, mutual interests, and vibrant people-to-people ties. This partnership spans nearly all areas of human endeavour, including defence, trade, energy, and climate change.

 

Prime Minister Shri Narendra Modi's interactions with President Mr. Joe Biden:

·       G7 Summit, Italy (June 2024) - Bilateral meeting.

·       President Biden's visit to India (Sept 2023) for the G20 Summit.

·       PM Modi's State Visit to the U.S. (June 2023).

·       QUAD Leaders' Summit, Japan (May 2023).

·       Virtual Summit for Democracy (March 2023)

·       G20 Summit, Bali (Nov 2022).

 

Recent India Visits by U.S. Diplomats

·       NSA Mr. Jake Sullivan (June 2024) - iCET Summit.

·       Secretary of State Mr. Antony Blinken - QUAD, 2+2 Dialogue (2023).

·       Secretary of Defence Mr.  Lloyd Austin - 2+2 Dialogue (2023).

·       Secretary of Commerce Ms. Gina Raimondo (March 2023).

·       Treasury Secretary Ms. Janet Yellen - G20 Finance Meetings (2023).

 

Recent U.S. Visits by Indian Diplomats

·       External Affairs Minister (EAM) (Sept 2023) - Meetings in Washington D.C.

·       Raksha Mantri (Aug 2024) - Defence cooperation meetings.

·       Finance Minister (April 2023) - World Bank, IMF Meetings.

·       Commerce Minister (Nov 2023) - Trade Policy Forum.

 

Defence Cooperation

·       Framework for India-U.S. Defence Cooperation renewed for 10 years (2015).

·       Major Defence Partnership (MDP) designated in 2016.

·       Platforms like C-130J, Apache helicopters, and P8I are part of India's defence procurement from the U.S., valued at over $20 billion.

·       Bilateral military exercises: Yudh Abhyas (Army), Vajra Prahar (Special Forces), and Malabar (Navy).

 

Counterterrorism Cooperation

Regular cooperation includes information exchange, operational cooperation, and meetings through the India-U.S. Joint Working Group on Counterterrorism. The latest meeting was held in March 2024.

 

Security Cooperation

Homeland Security Dialogue (HSD) - A platform for cybersecurity, immigration, and transportation security issues. A bilateral Homeland Security meeting took place in February 2024 in New Delhi.

 

Trade & Economic Relations

·       The U.S. is India's largest trading partner, with bilateral trade in goods and services reaching $190.1 billion in 2023. India exported $83.8 billion in merchandise and $36.3 billion in services to the U.S. in 2023. 

·       FDI: The U.S. is the third-largest source of FDI into India, contributing USD 4.99 billion during FY 2023-24.

 

Strategic Energy Partnership

The India-U.S. Climate and Clean Energy Agenda 2030 Partnership was launched in 2021, focusing on clean energy and climate finance. The Strategic Clean Energy Partnership (SCEP) is built on five pillars, including renewable energy and emerging fuels.

 

Modi-Biden: Personal Bond and Strategic Legacy

President Mr. Joe Biden hosting Prime Minister Shri Narendra Modi at his personal residence in Wilmington, Delaware, was not merely a cordial engagement between two leaders; it was a symbolic culmination of a transformative era in India- US relations. As Foreign Secretary Shri Vikram Misri revealed, PM Modi expressed deep gratitude to President Biden for opening not only the doors of his home but also his heart to India. This moment, imbued with personal warmth, underscored the broader strategic ties that have evolved between the two nations under Mr. Biden's presidency.

Yet, the gesture was reciprocal. Shri Modi, despite the limited political returns from visiting at the end of President Biden's term, made the journey to his hometown. This speaks volumes about the deep rapport and strategic alignment between the two leaders, particularly when considering Mr. Biden's presidency has been transformative for India- US relations- arguably the most significant since Mr. George W. Bush pushed through the civil nuclear deal.

 

Mr. Joe Biden's leadership has not only understood but actively facilitated India's broader ambitions of becoming a global industrial and military power. Under his administration, crucial doors within the US national security and technology ecosystem have opened to India, albeit partially, but significantly so under the initiative on Critical and Emerging Technology (iCET), a partnership shaped by the close collaboration between National Security Advisors Mr. Jake Sullivan and Shri Ajit Doval.

From the very outset of his presidency, Mr. Joe Biden dispelled any uncertainties about his administration's Indo-Pacific strategy and the importance of India within it. Elevating the Quad to a leaders- level dialogue within months of assuming office and offering timely, though somewhat delayed, assistance during India's devastating second wave of the pandemic, Mr. Biden reinforced America's commitment to its ally. The September 2021 Quad summit held in the US set forth an ambitious agenda, particularly in the domain of emerging technologies. However, the game- changer came in mid-2022 when Shri Modi and Mr. Biden decided to have their national security teams focus on developing Initiative on Critical and Emerging Technology (iCET), officially launched in January 2023.

The framework underlying iCET is rooted in a shared understanding of geopolitical realities. India's need for job creation, driven by industrial manufacturing, has necessitated capital, much of which still flows from the US. India's strategic ambition to transition from a technology- receiver to a technology- leader hinges on the US moving away from its historical ambivalence about sharing advanced technology with India. In this context, the US's willingness to shift from a technology-denial regime to active collaboration marks a pivotal moment. For India to truly emerge as a great power, developing a robust military- industrial base is essential, a goal that requires deepened coproduction and co-development partnerships. The historical precedent is clear: no major power post-World War II-whether in Western Europe, East Asia, or China-rose to prominence without the US playing a pivotal enabling role.

 

President Biden, for his part, has recognised the strategic importance of diversifying supply chains in a post- pandemic world where over- reliance on China has exposed vulnerabilities. India, with its vast talent pool, strategic location, and potential for large-scale manufacturing, is a natural partner for the US in this global reshuffling. Biden administration has embraced India as a key collaborator in the technology space, recognising its contributions in areas such as artificial intelligence, data management, and quantum research. Moreover, Mr. Biden's understanding of America's relative decline on the global stage has prompted a need for burden-sharing, particularly in defence. Moving beyond the traditional approach of merely selling arms, the Joe Bidens administration has pushed for deeper industrial cooperation, including significant reforms in US export control policies to facilitate American capital investments in India's defence and technology sectors.

Despite divergences over Russia, ideological differences between the Democratic Party and the BJP, or diplomatic controversies, Mr. Biden has consistently prioritised the India- US partnership. His flexibility during India's G20 presidency is a testament to his commitment to ensuring Delhi's global leadership aspirations are realised.

At the heart of the Modi-Biden relationship lies a mutual respect for each other's visions for their countries. The defence-tech-manufacturing axis has been at the core of their shared strategic priorities, and the factsheet released during Modi's visit reflects this. From fostering military cooperation and boosting semiconductor production to building alternative supply chains for clean energy, deepening space collaboration, and advancing AI and quantum research, the breadth of bilateral initiatives reflects the symbiotic nature of India-US ties. President Joe Biden's decision to allow American capital to flow into India's sensitive sectors and work toward reshaping export controls marks a critical departure from past policies, setting the stage for a new chapter in bilateral relations.

In historical terms, the Biden presidency will be remembered as a period that not only solidified India-US ties but also laid the groundwork for a deep, strategic collaboration that spans defence, technology, manufacturing, and beyond. This chapter in bilateral relations, characterised by mutual trust and shared aspirations, is poised to leave an enduring legacy.

(The author is Delhi- based Correspondent of an international multi-media platform. Feedback on this article can be sent to feedback. employmentnews@gmail.com) Views expressed are personal.