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INDO-USA RELATION 2011

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					INDO-USA RELATION 2011
Overview
India-US relations have become increasingly broad based covering cooperation in areas such as trade
and economic, defence and security, education, science and technology, high-technology, civil nuclear
energy, space technology and applications, clean energy, environment and health. People to people
interaction provide further vitality and strength to bilateral relationship. There have been regular contacts
at political and official levels and a wide-ranging dialogue architecture on bilateral, regional and
global issues has been put in place.


The visit of Prime Minister Dr. Manmohan Singh to Washington from 22-26 November, 2009 as the first
State Guest of President Barack Obama reaffirmed the global strategic partnership between India and the
United States. President Obama’s visit to India from 6-9 November 2010, imparted further momentum to
bilateral cooperation and helped establish a long-term framework for India-US global strategic
partnership. President Obama characterized India-US relationship as one of the defining partnerships of
the 21st century.


Major areas of cooperation
A "Strategic Dialogue" was established in July 2009 during the visit of US Secretary of State Hillary
Clinton to India with the objective of strengthening bilateral cooperation across diverse sectors. The first
round of the Strategic Dialogue was held in Washington DC in June 2010, followed by the second round
in New Delhi in July 2011. The Minister of External Affairs led the Indian delegation for the Dialogue; US
Secretary of State led the Dialogue from the US side.


Trade and Economic Relations
The trade and economic partnership between the US and India has been a key component of the bilateral
relationship. A new US Financial and Economic Partnership to strengthen bilateral engagement on
macroeconomic, financial, and investment-related issues was launched in New Delhi in April 2010 by the
Finance Minister Mr.Pranab Mukherjee and US Treasury Secretary Timothy Geithner. The Agreement on
Framework for Cooperation on Trade and Investment was signed during the visit of Minister for
Commerce & Industry, Mr. Anand Sharma to USA in March 2010.


Bilateral trade has diversified and encompasses a wide range of products, services and technology. An
expanding & vibrant architecture of dialogue on commercial, economic and technology related issues has
given a fillip to this cooperation. India-US total merchandise trade was US $ 48.75 billion in 2010. The two
way services trade was US $ 38 billion in 2008. The two governments plan to resume technical-level
negotiations on a bilateral investment treaty. A totalization agreement has also been under discussion for
some time.


Bilateral Investments
US is the third largest source of foreign direct investments into India. The cumulative FDI inflows from the
US from April 2000 to March 2011 amounted to about $ 9.44 billion constituting nearly 7.28 percent of the
total FDI into India. During the financial year 2010-11 (from April 2010 to March 2011), the FDI inflows
from US into India were $ 1.17 billion contributing 7% of the total FDI inflow during this period. In recent
years, growing Indian investments into the US, estimated by independent studies to be around US$ 26.5
billion between 2004-2009, has been a novel feature of bilateral ties.


Clean Energy and Climate Change Initiative
An Agreement for Cooperation on Joint Clean Energy Research and Development Center (JCERDC) was
signed between India and US in November 2010. The Center aims to help development of
critical technologies for renewable energy, energy efficiency, clean coal, including carbon capture and
storage, and other areas of clean energy. It has been announced that the two Governments would
provide US$ 5 million each annually for next five years towards their share of research cost under
the Agreement while an equivalent cost will be borne by the Consortia which will carry out the research.
The first joint Funding Opportunity Announcement for the JCERDC was made in May 2011 seeking
research projects on consortia mode under PPP model of funding in the initial priority areas of solar
energy; second generation biofuels; and energy efficiency of buildings. In response to the first call for
proposals, 21 joint proposals from different consortia have been received. Maiden awards are expected to
be announced by end 2011.


Counter-terrorism Cooperation
Cooperation in counter terrorism has seen considerable progress over the last few years. A new India-US
Counter-Terrorism Cooperation Initiative was signed in 2010 to expand collaboration on counter-
terrorism, information sharing and capacity building. Separately functional level cooperation on counter-
terrorism is being pursued through a Joint Working Group (JWG) on Counter Terrorism that was
established in January 2000. The 12th meeting of the JWG was held in New Delhi in March 2011. A new
Homeland Security Dialogue was also announced during President Obama’s visit to India in November
2010 to further deepen operational cooperation, counter-terrorism technology transfers and capacity
building. The US Secretary of Homeland Security Janet Napolitano visited India in May 2011 to hold the
first round of this dialogue with Home Minister Mr. P. Chidambaram.


Defence Cooperation
The ‘New Framework for India-US Defence Relationship’ was signed between the two sides on June 28,
2005. Both sides have agreed to pursue mutually beneficial defence cooperation through the existing
security dialogue, servicelevel exchanges, defence exercises and defence trade and technology transfer
and collaboration. India’s defence orders from U.S. companies have reached a cumulative value of over
USD 8.0 billion in the last decade. Defense Secretary Robert Gates visited India in January 2009.
Raksha Mantri Shri A.K. Antony visited Washington in September 2010. Apart from the Ministerial level
exchange, there are exchanges between each of the Services, with regular joint exercises.
Civil Nuclear Initiative
The bilateral civil nuclear cooperation agreement was finalized in July 2007 and signed in October 2008
by EAM and then Secretary of State Condoleezza Rice. During the visit of President Obama to India in
November 2010, the two Governments announced completion of all steps to begin implementation of the
Civil Nuclear Agreement. Indian and US companies are now working towards early commencement of
commercial cooperation in this area.


This initiative has been strengthened by the regular meeting of the Indo-US Civil Nuclear Working Group
(CNWG). The 4th joint CNWG Meeting was held at Oak Ridge National Laboratory in July 2011. At the
sideline of the recently held 2nd meeting of the India-US Strategic Dialogue, Department of
Atomic Energy and US Department of Energy signed an Implementing Agreement on ‘Discovery Science’
that provides the framework for cooperation in accelerator and particle detector research and
development with Fermi National Accelerator Laboratory, Stanford Linear Accelerator Laboratory,
Thomas Jefferson National Accelerator Facility and Brookhaven National Laboratory.


Space Cooperation
The two sides have had long history of cooperation in Civil Space arena. A bilateral Joint Working Group
on Civil Space Cooperation has been established as a forum for discussions on joint activities in space.
The Group had its 3rd meet at Bangalore from 13-14 July 2011. Both the sides have agreed to continue
and expand their joint activities in the area of civil space cooperation. Major areas include: (i) exchange of
scientists;   (ii)   OCM2, INSAT3D     collaboration;   (iii)   future   mission   definition   workshops;   (iv)
nanosatellites; (v) carbon /ecosystem monitoring and modelling; (vi) feasibility of collaboration in radio
occultation: (vii) CSLA: (viii) international space station; (ix) global navigation satellite systems; (x)
formation flying; (xi) space exploration cooperation; (xii) space debris mediation.


Education sector
India-US Education Dialogue was announced by the two Governments in July 2009 during the visit of US
Secretary of State to India. Both Governments have launched the “Singh-Obama 21st Century
Knowledge Initiative” in November 2009 with funding of US$ 5 million from both sides to
increase university linkages and junior faculty development exchanges between US and Indian
universities. The first joint request for proposals under the initiative has been published recently. India and
the US have signed a new bilateral Fulbright Agreement that supersedes the Fulbright Agreement
operating since 1950 with US funding. Under the Agreement, the Government of India and the United
States will implement the scholarship programme as full partners. The amount has been increased to US
$7.06 million (from US $ 5 million) from the financial year 2010-11. In the 2009/10 academic year, more
than 100,000 students from India were studying in the US To further boost our cooperation in this field,
the First India-US Higher Education Summit is proposed to be held in Washington D.C. in October 2011.


Cooperation in Science & Technology
India and the US signed a Science & Technology Agreement in October 2005 that encourages joint
research and training, and the establishment of publicprivate partnerships. As a component of this
agreement, the first meeting of the Joint Commission was held on 24-25 June 2010 in Washington D.C. A
$30 million Science & Technology Endowment for jointly promoting science & technology research,
development and innovation was established in July 2009. The first call inviting Letter of Intent under the
two priority areas namely, ‘Healthy Individual’ and ‘Empowering Citizens’ was made in May 2011. Out of
381 Letter of Intents received in response, 32 have been shortlisted for inviting full project proposals.


The Indo-US cooperation in S&T is catalyzed by the bilateral Science and Technology Forum, which has
enabled more than 10,000 scientists, technologists and students from the US and India to interact,
established 24 virtual joint research centers and organized more than 30 training programmes and
numerous bilateral conferences. Collaboration between the Ministry of Earth Sciences and NOAA has
been strengthened by signing of three Implementation Arrangements for collaboration in October 2010 on
Tropical Cyclone Research; Tsunami Science - detection, analysis, modeling & forecasting; and INSAT
3D satellite data applications. In November 2010, a ‘Monsoon Desk’ has been established in NOAA for
enhancing monsoon forecasting. This will also help in building India’s capacity in developing and using a
coupled ocean-atmosphere modeling system for strengthening the “National Monsoon Mission”.


Cooperation in the Health Sector
In July 2009, a 'Health Dialogue' was established between the two countries. To date, four working
groups have been constituted viz. maternal and child health, non-communicable diseases, infectious
diseases and health system strengthening. A Global Disease Detection - India Centre has
been established vide a MoU between US Centers for Disease Control & Prevention and National Center
for Disease Control. Recently, Department of Biotechnology and the National Institutes of Health have
launched new bilateral cooperation on Low Cost Health Diagnostic Tools; Brain Research Collaborative
Partnership on neuroscience; and International Cancer Genome Consortium.


Cultural cooperation
There is considerable interest in Indian music, dance, art and literature in the United States. The Indian
American community is also active in promoting Indian culture. In March 2011, the Kennedy Centre in
collaboration with Indian Council for Cultural Relations and the Embassy hosted a three-week long mega
festival “maximum India”, that showcased the work and talents of renowned Indian artists, including Dr. L.
Subramaniam, Ustad Zakir Hussain, Malavika Sarukkai, Naseeruddin Shah, Shabana Azmi and several
others. The Embassy also regularly hosts cultural events, highlighting the work of Indian and Indian-
American authors and artists. The Consulates too are active in organizing Indian cultural events, including
in collaboration with local cultural institutions.


Indian Press
PTI and IANS have their representatives in Washington DC. Several leading dailies [Times of India,
Telegraph, Economic Times, The Hindu, Hindustan Times] have correspondents based in Washington
DC. The Pioneer, Indian Express and New Indian Express, The Bengal Post, Outlook and The Week are
also represented in US. The TV channels represented in the US are AAJ TAK, Headlines Today, Times
Now, CNN-IBN and ZEE TV [through a tie-up with VOA]. NDTV has their full-time correspondent based in
New York.


People-to-people ties
As per the 2010 census figures of the United States, the Indian American community has grown to 2.84
million and is the second largest Asian community in the country. The Indian American community, which
includes a large number of professionals, educationists and entrepreneurs, has been increasing its
sphere of influence and gaining in political strength. With two Indian Americans occupying high level
posts of Governor, a Congressmanand several Representatives of State Legislatures and in the
Federal Administration, the Community has thus assimilated into their adopted country and acting as a
catalyst to forge closer and stronger ties between India and USA.


Recent Contentions:

In recent past some major contention take place both bilaterally and in international arena. First USA still
compelling to modify India's "Civil Liability for Nuclear Damage Act" which is not acceptable to
India in particular, the Indian side insists that any rules the government might frame to guide the Act's
implementation cannot override its provisions, including Section 17(b), which gives Indian operators a
‘right of recourse' against nuclear suppliers in the event of an accident caused by defective equipment.



Second India's difficulty in paying for Iran oil supplier, though India supported for US sponsored resolution
in UN against Iran, India struggling to find a way to pay for Iranian oil companies, second largest supplier
after Saudi Arabia amid Iran threat to stop oil supply.

Third India abstained from voting against imposing No-Fly zone on Libya in UN security council along with
BRIC countries and told India not welcoming idea of using foreign force in the civil war which dissatisfied
USA.

Apart from all India deliberately supported Palatine aspiration for UN full membership according to her
age old foreign policy towards middle east which was a shock to USA and it threatened to use veto power
if matter comes to security council.

				
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Description: INDO-USA RELATION 2011