India-USA relations are blossoming
United States President Joe Biden visited India from September 8–10. The first day was devoted to bilateral meetings with Prime Minister Narendra Modi, followed by participation in G20 Summit on September 9 and 10. Let’s have a look at the evolving relationship between the two largest democracies of the world.
Helping India in crisis
At the time of independence in 1947 India was a poor country. Thirty-five crore population was growing rapidly. The country did not have enough food and the foreign reserves to import food. America helped India in those difficult times by supplying wheat at concessional rates in rupee payment under the Food for Peace Program (PL 480) around 1955. Under this program India received about 800 lakh ton wheat till 1972.
Food aid was supplemented by enhancing India’s food grain production capacity. The country was divided into five regions, and five leading US Land Grant Agriculture Colleges were assigned to modernise agriculture education, research, and extension. The College of Agriculture, Ohio State University (OSU), was assigned Region II comprising the states of Punjab, PEPSU, Rajasthan, and Himachal Pradesh. About 50 scientists of College of Agriculture and (later) Punjab Agricultural University (PAU) completed Ph.D. degrees at the US universities (many at OSU) and 30 OSU professors worked at PAU to develop a new system of agriculture education, research, and technology transfer to farmers. To commemorate the role of Associate Dean Scott Sutton in nurturing the College of Agriculture/Punjab Agricultural University-OSU-United States Agency for International Development USAID) partnership, the VIP Guest House at PAU is named after him.
As a result of these efforts PAU became the cradle of Green Revolution. Funding for this remarkable institutional transformation was provided by the USAID, Rockefeller, and Ford Foundations in addition to Governments of Punjab and India. Similar, though less effective, support was provided to Pant Nagar, Bhubaneshwar, Coimbatore, and Hyderabad Agricultural Universities.
The MIT helped in developing world-class Indian Institute of Technology Kanpur and the Harvard University helped in developing world-famous Indian Institute of Management Ahmedabad.
Away from media glare, Union Agriculture Minster C. Subramaniam and US Agriculture Secretary Orville L. Freeman developed a framework for improving food production in India. It included, among other things, the followings:
· Frank Parker of USAID developed the concept of floor price for wheat and rice which is now known as minimum support price. Another PAU guest house is named after him.
· Establishment of Food Corporation of India for procurement and distribution of food grains.
· Establishment of Agriculture Produce Market Committees for reducing exploitation of farmers by the traders.
These structural changes played a pivotal role in making India a food secure country.
Upswing started in late 1980s
The starting point for the present upswing was Prime Minister VP Singh accepting a proposal for setting up a joint Steering Committee on Defence. This was followed by the minority government of Prime Minister Chandra Shekhar allowing US military overflying and refueling facilities in the 1991 Gulf War.
Economic reforms of 1991, worries about Y2K bug, large pool of English-speaking youth, low wages, and rising purchasing power of 30 crore upper middle class attracted the US companies to India.
Nuclear Deal
By signing the US-India Civil Nuclear Agreement in 2008, despite the country not having signed the Nuclear Non-Proliferation and the Comprehensive Test Ban Treaties, the USA recognized India as a Nuclear Weapons State. This was a watershed moment in the ties.
June 2023 agreements
In June 2023 Prime Minister Narendra Modi became the third statesman in history, after Winston Churchill and Nelson Mandela, to address the Joint Session of US Congress twice. The agreements signed during the high-profile state visit span from ‘the Seabed to the Stars’:
· Defense technology transfer (co-production of powerful General Electric jet engines for indigenously developed Tejas fighter planes),
· Advanced high-altitude drones for use by Indian military,
· Increased cooperation in space exploration and security,
· Increased cooperation in cyber security, artificial intelligence, quantum technology and rare minerals essential for transition to green energy.
For improving people to people relations, India is setting up a Consulate in Seattle and the US is opening Consulates in Bengaluru and Ahmedabad.
The withdrawal of seven trade disputes from the World Trade Organization shows the enhanced trust between the two countries.
After the Nuclear Agreement, US gave a sophisticated amphibious vessel, the USS Trenton, to India at a throw away price. It also re-christened Pacific Naval Command in Hawaii as US Indo-Pacific Command with a mandate to cover Pacific and Indian oceans.
Driving forces behind relationship
The key drivers of the re-invigorated relationship include:
· Convergence of geo-strategic priorities in the rapidly changing global scenario,
· Emergence of Indian ‘soft power’, and
· Covid-19-induced disruption of China-centric supply chains.
Last 25 years have witnessed the emergence of 27 lakh Indian-descent people as the highest educated group in USA. They are also the highest earners with a median household income of US$ 150,000 per year, double the national average of US$ 70,000.
Indian power at the pinnacle of high tech, business and government in US has considerably expanded during the last 10 years. Persons of Indian descent in eminent positions include Vice President Kamala Haris, five members of Congress, and about 50 members of state legislatures. Mr. Ajay Banga recently became President of the World Bank Group. The National Science Foundation is headed by Dr. Sethuraman Panchanathan. Three Deans of top five business schools, including Harvard Business School, are of Indian origin. Many respected science and technology researchers in US universities and private companies are of Indian origin. Twenty-five Chief Executive Officers of 500 top US companies are of Indian descent. A Fortune 500 company not having a high-end global capability center, hub or back office in India is rare. Indian techies are by far the largest holders of H1B visa. Bilateral trade is growing and is expected to reach US$ 200 billion soon.
Gone are the days when Indian-descent businessmen were regarded as persons with funny accent and difficult to pronounce names. They had to cross a higher bar for getting funding from venture capitalists. Now Indians are considered smart persons and are funded by venture capitalists.
De-risking supplies
To diversify and de-risk China-centric supply chains, Biden administration is nudging ‘friend shoring’ of manufacturing by the US companies in India and other strategic partner countries. The Government of India is providing subsidies to these companies and nudging the State Governments to facilitate this transition. The challenges include infrastructure, procedural delays, shortage of top-notch talent and inability of most states (except Maharashtra, Gujarat, Karnataka, Tamil Nadu and UP) to capitalize on the emerging opportunities.
Prime Minister Narendra Modi developed cordial relations with three US Presidents — Obama, Trump, and Biden.
Late Dr. Henry Kissinger deserves appreciation for praising India’s pragmatic foreign policy. When George W. Bush was preparing for his run for the presidency, India was primed for him. On Kissinger’s advice he reached out to Ms. Condoleezza Rice, a Stanford University Professor. She became National Security Advisor and Secretary of State. With her backing, Bush administration initiated the Next Steps in Strategic Partnership with New Delhi leading to the US-India Nuclear Agreement with Manmohan Singh as the Prime Minister.
For executing Prime Minister Narendra Modi’s diplomacy agenda, Minister of External Affairs Dr S. Jaishankar’s experience of handling Americas Desk and as Ambassador to the USA and China is proving an asset.
Successful landing of Chandrayaan-3 on the moon in August 2023 has added a new heft in India’s science and technology prowess.
Road ahead
The foundation of India-America relations is based on commonality of interests and geo-strategic priorities. Both countries are working on the follow up actions in the transformative agreements reached in June 2023. Beyond the agreements, there is considerable scope for achieving convergence of social and human values and a shared respect for diversity and rule of law. Other areas requiring attention are world peace, climate change, transition to green energy, food security and the mounting debt of Global South.
