The Hindu: Published on 15th Feb 2025:
Why in News?
India and the U.S. have agreed to double their bilateral trade to $500 billion by 2030, covering key areas like trade, defence, technology, and energy. The U.S. has also approved the extradition of 26/11 accused Tahawwur Rana, while both sides agreed to enhance military cooperation, including the possible sale of F-35 stealth fighters to India.
Key Highlights-
Trade & Economy: India and the U.S. aim to negotiate a trade deal by 2025, with India increasing energy imports to reduce the U.S. trade deficit.
Defence Cooperation: A 10-year defence framework was announced, including negotiations for F-35 fighter jets and six P-8I Maritime Patrol aircraft for India.
Technology & Energy: India to boost oil and gas imports from the U.S. and explore Small Modular (nuclear) Reactors.
Extradition of Tahawwur Rana: The U.S. has cleared the path for extraditing 26/11 Mumbai attack accused Tahawwur Rana to India.
Border Tensions with China: The U.S. offered to "help" India with its border issues with China.
Defence Procurement: Both countries to align procurement systems and ease U.S. arms transfer regulations for India.
Impact & Implications-
Economic Growth: Doubling trade will boost industries, job creation, and investments in both nations.
Energy Security: India’s increased energy imports will help meet its growing demands and reduce reliance on other suppliers.
Defence Modernization: Procurement of advanced defence equipment (F-35, P-8I aircraft) strengthens India’s military capabilities.
Geopolitical Influence: Strengthened India-U.S. ties counterbalance China’s growing assertiveness in the Indo-Pacific.
Counterterrorism: Rana’s extradition marks progress in India’s fight against terrorism and strengthens legal cooperation.
Challenges & Concerns-
Trade Deficit & Tariffs: The U.S. President criticized India’s tariffs as “unfair,” and negotiations may take time to balance trade relations.
Technology Transfer Restrictions: The U.S. ITAR (International Traffic in Arms Regulations) could limit India’s access to sensitive defence technology.
China’s Reaction: India’s closer ties with the U.S. may provoke stronger responses from China, especially regarding border issues and military alliances.
Political Uncertainty: Future U.S. administrations might revise trade and defence policies, affecting long-term agreements.
Way Forward-
This agreement marks a significant step in India-U.S. relations, with far-reaching implications for trade, defence, and global geopolitics.