08-08-2025 Mains Question Answer
Discuss the structural challenges facing the India–U.S. relationship in the context of recent developments. How can both countries recalibrate their strategic partnership to overcome these challenges?
The evolving India–U.S. strategic partnership, strengthened by initiatives like INDUS-X (defence innovation) and RETAP (renewable energy), has achieved notable progress in defence, trade, and technology. However, recent tensions—such as the U.S. imposing 25% tariffs on certain Indian imports, followed by an additional 25% (total 50%)—reflect deeper structural challenges arising from divergent strategic priorities, economic frictions, and shifting global dynamics.
Structural Challenges
| Challenge Area | Key Issues |
| 1. Geopolitical Alignment Issues | – India’s strategic autonomy, including ties with Russia (defence imports) and Iran (Chabahar Port), diverges from U.S. priorities. – Differing stances on Afghanistan and engagement with the Taliban complicate coordination. |
| 2. Economic and Trade Tensions | – Long-standing trade disputes, including six WTO cases resolved in 2023, show persistent friction. – Tariff disputes in ICT goods and the recent 50% cumulative tariff hike hinder trade flows. – Disagreements over IPR protection, market access, and regulatory barriers constrain cooperation. |
| 3. Technology and Defence Cooperation | – Progress like F-414 jet engine tech transfer is offset by CAATSA restrictions and U.S. export controls. – Disputes over data localization and digital sovereignty limit digital partnerships. |
| 4. Regional Security Dynamics | – Renewed U.S.–Pakistan defence and trade engagement reduces India’s regional strategic space. – Divergent threat perceptions regarding China and the Indo-Pacific weaken alignment. |
Recalibration Strategies
- Strategic Convergence: Deepen Indo-Pacific cooperation via QUAD, maritime security exercises, and crisis-response frameworks.
- Economic Partnership: Fast-track a Bilateral Trade Agreement, expand RETAP projects in renewable energy, and pursue sectoral deals in semiconductors and green tech.
- Defence and Security: Move beyond buyer–seller defence ties through SOSA (Security of Supply Arrangement), strengthen intelligence sharing, and enhance cybersecurity collaboration.
- Institutional Dialogue: Use Track 1.5 platforms to bridge ideological gaps and foster trust.
The future of the India–U.S. partnership depends on balancing India’s strategic autonomy with sustained convergence in key sectors. By focusing on shared Indo-Pacific priorities, high-impact economic cooperation, and trust–building measures, both nations can transform current frictions into long-term strategic resilience in an evolving global order.