01 June 2014
The Ties That Don’t (Yet) Bind
Executive summary
A central plank of the Obama Administration’s “rebalance” to the Asia Pacific is the development of a stronger partnership between the United States and India. Although there are several reasons for optimism regarding the future trajectory of Indo-U.S. relations, certain stumbling blocks nevertheless threaten to constrain further progress. On the one hand, continued forward momentum in Indo-U.S. relations is facilitated by three important factors: (i) both states share a common geopolitical interest in countering a rising China; (ii) defence trade and cooperation between the two countries are at an all-time high; and (iii) civilian trade and investment has increased considerably in recent years. On the other hand, the potential for dramatic improvement in the quality of the relationship is jeopardised by continued Indian restrictions on foreign investment and trade, and by New Delhi’s adherence to a grand strategy of non-alignment. This policy brief reviews the grounds for optimism and pessimism in the strategically important Indo-U.S. partnership, and it offers recommendations to mitigate the latter.
Executive summary
A central plank of the Obama Administration’s “rebalance” to the Asia Pacific is the development of a stronger partnership between the United States and India. Although there are several reasons for optimism regarding the future trajectory of Indo-U.S. relations, certain stumbling blocks nevertheless threaten to constrain further progress. On the one hand, continued forward momentum in Indo-U.S. relations is facilitated by three important factors: (i) both states share a common geopolitical interest in countering a rising China; (ii) defence trade and cooperation between the two countries are at an all-time high; and (iii) civilian trade and investment has increased considerably in recent years. On the other hand, the potential for dramatic improvement in the quality of the relationship is jeopardised by continued Indian restrictions on foreign investment and trade, and by New Delhi’s adherence to a grand strategy of non-alignment. This policy brief reviews the grounds for optimism and pessimism in the strategically important Indo-U.S. partnership, and it offers recommendations to mitigate the latter.
