US President Joe Biden and Indian Prime Minister Narendra Modi toast at the state dinner at the White House in Washington, DC, Thursday, June 22, 2023.
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India-U.S. relations entered a new chapter as Prime Minister Narendra Modi and President Joe Biden announced a number of technology and defense agreements.
In his speech at a joint session of the US Congress, Modi said, “If India and the US work together in the areas of semiconductors and critical minerals, the world can make its supply chains more diversified, resilient and reliable.” helpful,” he said. “At the beginning of this century, we were strangers in defense cooperation, but now the United States is one of our most important defense partners.”
Former diplomats and analysts told CNBC they hoped the relationship would grow stronger and more deals could emerge.
That would include further military deals, according to Atul Keshap, chairman of the India-U.S. Business Council and a former temporary agent at the U.S. embassy in New Delhi.
“It would be great for democracy, it would be great for both countries, and frankly, it would be great for the Indo-Pacific and the world. “Both governments have been really impressed with the results they have announced,” he said Friday on CNBC’s “Squawk Box Asia.”
US President Joe Biden welcomes Prime Minister Narendra Modi of the Republic of India to Washington DC as an official state guest.
Washington Post | Washington Post | Getty Images
The two countries strengthened their defense partnership this week. close the deal This includes manufacturing General Electric F414 jet engines in India and repairing US Navy ships deployed at Indian shipyards.
Still, the United States and India are not allies and would be very different from the United States’ relationship with the rest of the region.
“The Biden administration is betting big on strategic and economic relationships, and it doesn’t depend on whether India will support the United States in the future. Not an alliance, but an equal partner. It is a relationship of equal strategic interest,” said Raymond Vickery, senior fellow in US-India Policy Studies at the Center for Strategic and International Studies.
More tech deals coming up
Also, as the US government pursues “friend shoring” (a strategy to diversify away from China and tap into the potential of other countries in the region), the US and India will have more deals on technology in the future. is expected.
“India needs cutting-edge technology, and I think Americans have become more open about sharing those key technologies and going in certain directions. It’s also useful for building bases,” said Hersh V. Pant, vice president of research and research. Foreign Policy at the Observer Research Foundation, a Delhi-based think tank.
The United States and India have agreed to work together in the fields of space and artificial intelligence, as well as to work together to ensure resilient supply chains of critical minerals.
“These should lead to further deals.” [as] Partnership practices and trust in relationships will grow even more,” said Arun Singh, a non-resident senior researcher at Carnegie India.
Former Indian Ambassador to the United States, Singh said, “The United States understands that talent and technology capital is a very important part of America’s global leadership in innovation.”
“India-born tech entrepreneurs and Indian-born CEOs have been an integral part of US leadership in innovation,” he said, noting that Prime Minister Modi’s state visit will give the United States access to India’s vital tech sector. added that the investment in
We cannot expect a free trade agreement to be concluded soon
The joint statement said that Prime Minister Modi “expressed India’s interest in being recognized by the United States as a Designator of the Trade Agreements Act in order to further strengthen the integration of the two economies and further promote bilateral trade and investment.” said.
Despite the friendly relationship, ORF’s Pant said a free trade deal was unlikely in the short to medium term.
“Comments from both sides of politics show a real lack of willingness to move forward with a free trade deal…that seems to be the bottleneck at the moment,” he said.
Similarly, former ambassador Singh said, “The United States is also reluctant to enter into such agreements until it improves its infrastructure and makes American workers more competitive.”
Still, the US and India have shown a willingness to improve their trade relationship.both sides agreed to terminate 6 outstanding disputes at the World Trade Organization.
— CNBC’s Naman Tandon contributed to this report.
