The Indo-US Relations so Far

India-United States relations: an Introduction

The foreign relations of a country on the world map is not only crucial for its existence there but also for its survival in the near future. The foreign relations between any two countries are critical from any stand, political, social or economical, for both the countries landing themselves into the ‘understanding’.

In this era of global economic crisis, it has become a prime importance for any country to assume a healthy relation with its neighbors and other countries so that a peaceful and prosperous life can be assured to its citizens. And as such the Indo-American relations can be specifically defined as the bilateral relations between the United States of America and the Republic of India. Both of these countries have a rich history of the relations they have gone in for the betterment of the future of their citizens and their economic upliftment. The rich history finds a suitable review in this book. This book thus is a review on these relations so far in varied fields like economy, culture and military.

To start with, let me first of all introduce one of the most exhaustive resources for the information on the foreign policies of United States of America, the superpower. Foreign Relations of the United States series, produced by the State Department’s Office of the Historian, presents the official documentary historical record of major U.S. foreign policy decisions and significant diplomatic activity. This series began in 1861 and now comprises more than 350 individual volumes which contain declassified records from all the foreign affairs agencies like Presidential libraries, Departments of Location and Defense, National Security Council, Central Intelligence Agency, Agency for International Development, and other foreign affairs agencies as well as the private papers of individuals involved in formulating U.S. foreign policy. Volumes published over the past few years have expanded the scope of the series in two important ways: first by including documents from a wider range of government agencies, particularly those involved with intelligence activity and covert actions, and second by including transcripts prepared from Presidential tape recordings. A staff of more than 30 historians and editors at the Office of the Historian in the Department of Location compile and prepare the volumes for publication.

On the other hand is India, the largest populous democracy of the world. India’s foreign policy has always regarded the concept of neighborhood as one of widening concentric circles, around a central axis of historical and cultural commonalties. With a very rich history of healthy realtions with many countries of the world, India has focused on increased financial security for its citizens and a greater focus on the prosperity. Thus the economy of the countries which have undergone a relation with India, have benefited vastly due to the ethnic work culture of this democratic republic. India is often considered a leader of the developing world and was one of the founding members of several international organizations, most notably the United Nations, the Non-Aligned Movement, the Asian Development Bank and theG20 industrial nations. India has also played an important and influential role in other international organizations like East Asia Summit [1], World Trade Organization [2], IMF [3], G8+5 [4] and IBSA Dialogue Forum [5]. Regional organizations India is a part of include SAARC and BIMSTEC.

India gained independence from the United Kingdom in 1947 and soon joined the Commonwealth of Nations and strongly supported independence movements in other colonies, like the Indonesian National Revolution [6].

In 1945, an American Strategic Policy document surveying the post-World War II global political climate considered the possibilities of alliances with the two nations that would soon achieve independence from Broad Britain, India and Pakistan. It suggested that India, rooted in Anglo traditions, would be a “natural ally” of the United States, but that Pakistan, with its Islamic origins, would be “unreliable [7].” The document seemed a promising start for US-Indo relations, but by the time that India finally did become independent in 1947, American foreign policy centered on the Cold War and how countries aligned with the East or the West. In that context, the decades of US-Indo relations leading up to Vajpayee’s tenure as Prime Minister consisted of skepticism, occasional successes, and an overall marginalization of the relationship’s strategic importance. Yet by 1999, the governments of both countries were praising each other – Vajpayee voicing his admiration of US democracy in an address to Congress and Congress in turn calling India a “natural ally [7].” The evolution of relations from Nehru to Vajpayee exemplifies the distinctly different attitudes and approaches the Vajpayee (and his American counterparts) brought to the commitment.

The post Second World War period witnessed an era of awakening and rise of political and nationalist aspirations of subjugated people over the world and the phenomenon of colonialism started crumbling leading to the emergence of many new Asian and African states. All these states decided to have an independent foreign policy of their contain and did not want to submit themselves to any superpower. It was also a time when the cold war between the Soviet and the US blocs was getting intensified. The super powers tried to win over these newly independent countries to their respective blocs. But some of them abhorred the idea of submission to any of the elegant powers. They wanted to pursue an independent foreign policy of their own rather than falling in line with any power bloc. It was this strategy of not joining either of the two power blocs and following an independent foreign policy that came to be known as Non-alignment. Although India decided not to align itself with any major power bloc during the Frigid War but developed strong ties with the Soviet Union to receive extensive military wait on from it. India was one nation that strongly supported the Non-Alignment movement.

In 1948, Nehru issued a proposal to the State Department vowing that he would not abet the Soviets should war rupture out against the Americans; in return, he requested from Washington its support in the struggle for Kashmir and for a relationship without Pakistani influence [7].

He was actually never against the US. Moreover, he was not a complete ally of the Soviet Union either. The proposal was rejected; the Secretary of Defense James Forestal said that India and its region “did not have any important significance [7].” The US was not involved in India, and in the following decades, would even provide support to Pakistan. Pakistan was a neighbor of the Soviet Union and explicitly sided against it, having joined both the Central Treaty Organization (CENTO, formerly the Baghdad Pact) and the Southeast Asia Treaty Organization (SEATO) and even fought against the Soviets when they occupied Afghanistan. As a reward, the US gave Pakistan training, briefings, and military and economic assistance packages [7]. This was a concept to be worried about. The military support going to Pakistan from the US drew the attention of the media and grew to be a subject of Huge heat. The heat had obvious reasons to gain an importance because of the violent dispute over Kashmir. Furthermore, Nehru’s actions did lean towards the Soviet side. American military support to Pakistan (the Pakistanis used American-made weapons in its 1965 war with India [7]), pushed Nehru more towards the Soviet Union, although he never explicitly embraced it as an ally. Rather, he and many of his successors allowed the Soviets to help earn industries in India, which the country greatly needed.

For a new, developing country, socialist ideas of mixed economies and the nationalization of industries also seemed safer than the free market, “hands-off” approach of capitalism [8]. With tighter management, Indian development could grow, but, with a solid industrial sector, did not have to rely entirely on Soviet (or other) aid; thus, there was no real need for India to choose a side in any US-Soviet conflict. The Indo-Soviet relationship did, however, remain stronger than the Indo-US one. The Soviets sold weapons to India, and they opened up production lines there for arms. Hindustan Aeronautics in Nasik, for instance, license-produced the Mikoyan MiG-27 aircraft [7, 9]. India was officially non-aligned throughout the Cold War, but with a Soviet bias.

But things changed dramatically after the Cold War and the scenario was to bring a decision of new and improved foreign policies for various countries, including India. The end of Cold War provided new opportunities for improving relations between the US and India. Indian adherence to democratic path, secularism, free market economy and above all the vast consumer market attracted the Americans, as has always done in case with many other nations on the globe. India also relinquished its non-aligned policy as there were no more two super powers. Pakistan has been sidetracked and the US is now India’s largest trading partner. The country now seeks to strengthen its diplomatic and economic ties with the United States [10], the People’s Republic of China [11], the European Union [12], Japan [13], Israel [14], Mexico [15], and Brazil [16]. India has also forged close ties with the member states of the Association of Southeast Asian Nations [17], the African Union [18], and the Arab League [19]. The review in this book presents the relationship between India and America in the Post-Cold War period and seeks to analyze the relation between the two countries during the novel years. Though India continues to have a very strong military relationship with Russia [20], Israel has emerged as India’s second largest military partner [19] while India has built a strong strategic partnership with the United States reflecting India’s policy of balanced and non-aligned relations. Thus both of the countries, India and the United States can be characterized and described by very strategic, methodical decisions as far as the relations between them is considered.

Let us now focus on the importance of the principles of foreign policy for any country. The presence and adherence to ethnic guiding principles for any country is the need of the hour. Every country should strive to swear her citizens of the new morning which shall bring an era of greater peace in his or her motherland and greater prosperity. The guiding principles of these two countries have ever been valid for the sustained growth of economy, trade, culture and many other aspects. The guiding principles of India’s Foreign Policy have been founded on Panchsheel, pragmatism and pursuit of national interest. Maintenance of territorial integrity, maintenance of freedom, promotion of international peace, the emancipation of the colonial people and the promotion of racial equality were the guiding principles of India’s foreign policy under Nehru. These very objectives were the foundation of Panchsheel which were later concrete steps towards the Non-Aligned Movement.

An optimal response of a foreign policy to new challenges is the need of the hour. A foreign policy is of limited use if it does not suit the global crisis which prevails today. The economic crisis which is present today shall not be a hindrance to the opportunities planned to be brought by this policy. It is thus worth noting an foreign policy has an integral role to play in building the nation’s capabilities through economic development, strengthening social fabric and well-being of the people and protecting India’s sovereignty and territorial integrity. India’s foreign policy is a forward-looking engagement with the rest of the world, based on a rigorous, realistic and contemporary assessment of the bilateral, regional and global geo-political and economic milieu.

There is another important justification to state that a foreign policy has a lot to do in its contain country and also in the other country. As for the case of India, as many as 20 million people of Indian origin live and work abroad and constitute an important link with the mother country. It is thus the responsibility and a task for the government to ensure their welfare and well being within the framework of the laws of the country where they live [21].

India is the world’s largest functioning democracy. Although India has been one of the founding members of the Non-Aligned Movement, it developed a closer relationship with the Soviet Union, as has been stated earlier. These relations had setback Indo-American relations throughout the Cold War. The fallout of the Soviet Union had brought about new relations between the two countries. The relationships warmed up and India was recognized as the strategic partner in Asia and the largest functioning democracy of the globe under the Bush Administration.

The history of these relations: Visit of Swami Vivekananda

Both the countries boast of a very strong historic relationship with each other. The visit of Swami Vivekananda who introduced Yoga and Vedanta to America cannot be deprived of a mention. Swami Vivekananda was the first known Hindu Sage to approach to the West, where he introduced Eastern thought at the World’s Parliament of Religions, in connection with the World’s Fair in Chicago, in 1893. The first lecture that he delivered was a commendably historic lecture ever delivered by a anecdote. The first lecture started with the line “Sisters and Brothers of America,” [22] made the audience clap for two minutes just to the address, for prior to this seminal speech, the audience was always used to this opening address: “Ladies and Gentlemen”.

This speech later catapulted him to fame by his wide audiences in Chicago and then later everywhere else in America, including far-flung places such as Memphis, Boston, San Francisco, New York, Los Angeles, and St. Louis.

India became independent in the year 1947. But until the end of the cold war, the relation between the two nations had not been very healthy and warm. It was because of the collaboration of India with Soviet Union for the military help. From 1961 to 1963 there was a promise to help set up a large steel mill in Bokaro that was withdrawn by the U.S. The 1965 and 1971 Indo-Pakistani wars did not help their relations. During the Cold War, the US asked for Pakistan’s help because India was seen to lean towards the Soviet Union. Later, when India would not agree to support the anti-Soviet operation in Afghanistan, it was left with few allies. Not until 1997 was there any effort to improve relations with the United States.

Then came the rule of the Atal Bihari Vajpayee government which authorized the famous nuclear weapon test in Pokhran. This test drew the immediate attention of the US. The Clinton administration and Vajpayee exchanged representatives to encourage compose relations. In March 2000, President Bill Clinton visited India. He had bilateral and economic discussions with Prime Minster Atal Bihari Vajpayee. Over the course of improved diplomatic relations with the Bush administration, India has agreed to allow cessation international monitoring of its nuclear weapons development while refusing to give up its current nuclear arsenal. India and the US have also greatly enhanced their economic ties.

We see in India today a rising economic leader, making breathtaking strides in information technology; an emerging environmental leader promoting ambitious goals for energy efficiency; a pioneering health leader, recently immunizing 140 million children against polio; a leader in our community of democracies, reminding the world that freedom is not a Western value, but a universal longing.

During the 9/11 terrorist attacks on the U.S., President George W. Bush chose India as the country to control and police the Indian Ocean sea-lanes from the Suez to Singapore. The tsunami that occurred in December 2004 saw the U.S. and Indian navies to work together in search and rescue operations and to reconstruct the damaged lives and land. An Open Skies Agreement was made in April 2005. This helped enhance trade, tourism, and business by the increased number of flights. Air India purchased 68 US Boeing aircraft, which cost $8 billion.

Former U.S. Secretary of Defense Donald Rumsfeld and U.S. Secretary of State Condoleezza Rice have made recent visits to India as well. After Hurricane Katrina, India donated $5 million to the American Red Rank and sent 2 plane loads of relief supplies and materials to help. And on 1 March 2006, President Bush made another diplomatic visit to expand relations between India and the United States.

John McCain and Barack Obama, the nominees for the 2008 US presidential election, both have bright visions of the future of Indo-American relations, though with some differences. McCain appears to see India as a counterweight to China’s ever-growing influence over the world; he would like to see India become a permanent member of the annual Group of 8 meetings and would warmly gather India’s bid for a permanent seat on the UN security council. Alongside this a McCain presidency would develop closer strategic and military ties with India. Obama offers a different, though not opposing, relationship that would be marked by closer economic ties.

Military relations

Military to military relationships usually have as their underlying basis the tacit approval of the ‘limiting boundaries’ set by the political leadership of the two countries fervent.

The United States has a long and somewhat controversial history of such relationships that it has forged with countries around the world, particularly in The Philippines, South Korea, Japan, Indonesia, Egypt, Nigeria and Latin America and nearer home in Pakistan, Iran, Saudi Arabia, Iraq, Turkey and now in Eastern Europe and the Central Asian and Caspian Sea region.

However, one thing needs a mention. The military to military relationships of US with European nations have been of a markedly different character, though immediately after World War II, the US was engaged in a immense covert undercover operation, which consisted in eliminating the Communist Resistance in these countries. The US had gained popular acceptance in several European countries including such as France, Italy and Greece to give some examples, in thought of their anti-fascist peoples movements and militia organization at a time when most governments had capitulated to Nazi /fascist atrocities.

Overthrow of democratically elected civilian governments was routine in Brazil, Argentina, Chile or Pakistan if it served the political and economic interests of the US.

Apart from these hot stuffs, the US has sufficiently fared well with India. The relationship of US with India can be aptly termed as a very healthy and prospective relationship needed for the strengthening of the military bases in both the nations. Both these countries have commonly and vehemently believed in freedom, democracy, and the rule of law, and seek to advance shared security interests. It is for these reasons that the strategic collaboration on military issues has a prime importance in this discussion. The various objectives in this sense are:

1. Maintaining security and stability, defeating terrorism and violent religious extremism,

2. Preventing the spread of weapons of mass destruction and associated materials, data, and technologies and

3. Protecting the free flow of commerce via land, air and sea lanes.

The United States had invited India to the missile defence exercise and demonstration to be held in the US. This invitation was extended to India during the visit of US Under Secretary of Defence for Policy Douglas Feith on Dec 3 2001. Apart from NATO allies, only countries invited were India, Russia, Japan and South Korea. This was the first time that the Defence policy group (DPG) met after the sanctions against India when the nuclear tests of Pokhran were conducted in 1998. In recent years India has conducted joint military exercises with the U.S. in the Indian Ocean. Despite this the Indian government sees the sole U.S. base in the Indian Ocean, Diego Garcia, and the permanent presence of the U.S. military there, as a potential escalation point in a future war, especially because of the recent U.S. operations in Iraq and

Afghanistan. As far as Iraq is considered, The Iraq War, is an ongoing military campaign which began on March 20, 2003 with the 2003 invasion of Iraq by a multinational coalition composed of United States and United Kingdom troops supported by smaller contingents from Australia, Denmark, Poland and other nations. This Iraq war is also known as the second gulf war. President Bush has consistently referred to the Iraq war as “the central front in the War on Terror”, and has argued that if the U.S. pulls out of Iraq, “terrorists will follow us here [23-25]. While other proponents of the war have regularly echoed this assertion, as the conflict has dragged on, members of the U.S. Congress, the American public, and even U.S. troops have begun to inquire the connection between Iraq and the fight against terrorism. In particular, a consensus has developed among intelligence experts that the Iraq war has increased terrorism. The invasion led to the quick defeat of the Iraqi military, and the capture and execution of Saddam Hussein. The U.S.-led coalition occupied Iraq and attempted to establish a original democratic government; however, violence against coalition forces and among various sectarian groups soon led to asymmetric warfare with the Iraqi insurgency, strife between many Sunni and Shia Iraqi groups, and al-Qaeda operations in Iraq [26].

Economic relations

The United States is India’s largest exporting market and second largest trading partner after China. It has successfully maintained its economic supremacy on the globe and thus continues to be one of the major partners of the trade relations with India. Its gross domestic product (GDP) was estimated as $13.8 trillion in 2007 [27]. The U.S. economy maintains a high level of output per person (GDP per capita, $46,000 in 2007, ranked at around number ten in the world). The U.S. economy has maintained a stable overall GDP growth rate, a low unemployment rate, and high levels of research and capital investment funded by both national and, because of decreasing saving rates, increasingly by foreign investors. India’s exports to the United States in 2003 totalled nearly USD $13.1 billion, led by export of apparel and household goods, diamonds, and jewellery. American exports to India were valued at USD $5 billion [27].

The United States is also one of India’s largest train investors. From the year 1991 to 2004, the stock of FDI inflow has increased from USD $11.3 million to $344.4 million, totaling $4.13 billion. This is a Compound rate increase of 57.5% annually. Indian direct investments abroad were started in 1992. Indian corporations and registered partnership firms are allowed to invest in businesses up to 100% of their net worth. India’s largest outgoing investments are manufacturing, which account for 54.8% of the country’s foreign investments. The second largest are non-financial services (software development), which accounts for 35.4% of investments.

The US Investments in India

With regards to FDI U.S. is one of the largest foreign state investors in India. The stock of true FDI Inflow increased from U.S. $11.3 million in 1991 to US $4132.8 million as on August 2004 recording an increase at a compound rate of 57.5 percent per annum. The FDI inflows from the US constitute about 11 percent of the total valid FDI inflows into India.

Top sectors attracting FDI from USA are: Fuels (Power & Oil Ref.) (35.93%), Telecommunications (radio paging, cellular mobile & basic telephone services (10.56%) Electrical Equipment (including Computer Software & Electronics) (9.50%), Food Processing Industries (Food products & marine products) (9.43%), and Service Sector (Fin. & Non-Fin. Services) (8.28%).

Indian investments in US

Again on the other hand, India’s direct investments in US have been successfully influential. India’s investments abroad were initiated in 1992. Streamlining of the procedures and substantial liberalization has been done since 1995. As of now, Indian corporate/Registered partnership firms are allowed to invest abroad upto 100% of their net worth and are permitted to fabricate overseas investments in business activity.

The overall annual ceiling on overseas investment and also the requirement of prior approval of RBI for diversification of activity and for transfer by way of sales of shares have been done away with. The need for opening up the regime of Indian investments overseas has been the need to provide Indian industry access to new markets and technologies with a view to increasing their competitiveness globally.

Trade relations

It’s worthwhile to mention that, the United States is India’s largest trading partner. The trade relations between the two nations have been sufficiently constructive and methodical in maintaining a strong economic sustenance for both these nations. The growth of Indian economy in this era of global economic crisis can be attributed to the healthy trade relations between these two countries. In 2007, the United States exported $17.24 billion worth goods to India and imported $24.02 billion worth of Indian goods. Major items exported by India to the U.S. include Information Technology Services, textiles, machinery, ITeS, gems and diamonds, chemicals, iron and steel products, coffee, tea, and other edible food products. Major American items imported by India include aircraft, fertilizers, computer hardware, scrap metal and medical equipment.

As has been briefly discussed in the section above, the United States is also India’s largest investment partner, with American direct investment of $9 billion accounting for 9% of total foreign investment into India. This has accounted for larger job opportunities in India and eventually converting of semi-urban cities of India to urban. The GDP growth of India has been sufficiently satisfactory in this aspect. Americans have made notable foreign investment in India’s power generation, telecommunications, ports, roads, petroleum exploration/processing, and mining industries [37].

In July 2005, President George W. Bush and Indian Prime Minister Dr. Manmohan Singh created a new program called the Trade Policy Forum. It is run by a representative from each nation. The United States Trade Representative is Rob Portman and the Indian Commerce Secretary is Minister of Commerce Kamal Nath. The goal of the program is to increase bilateral trade which is a two-way trade deal and the lunge of investments.

There are five main sub-divisions of the Trade Policy Forum which include: Agricultural Trade group- This group has three main objectives: agreeing on terms that will allow India to export mangoes to the United States, permitting India’s APEDA (Agricultural and Process Food Products Export Development Authority) to certify Indian products to the standards of the USDA, and executing regulation procedures for approving edible wax on fruit. Tariff and Non-Tariff Barriers group- Goals of the group include: agreeing that insecticides that are manufactures by United States companies can be sold throughout India. India had agreed to cut Special regulations on trading carbonated drinks, many medicinal drugs, and lowering regulations on many imports that are not of agricultural nature. Both nations have agreed to discuss improved facets on the trade of Indian regulation requirements, jewelry, computer parts, motorcycles, fertilizer, and those tariffs that affect the American process of exporting boric acid.

The two nations have discussed matters such as those who wish to break into the accounting market, Indian companies gaining licenses for the telecommunications industry, and setting polices by the interaction of companies from both countries regarding recent policies related to Indian media and broadcasting. This group has strived to exchange valuable information on recognizing different professional services offered by the two countries, discussing the movement and positioning of people in developing industries and assigning jobs to those people, continuation of talks in how India’s citizens can gain access into the market for financial servicing, and discussing the limitation of equities.

The two countries have had talks about the restriction of investments in industries such as financial services, insurance, and retail. Also, to catch advantage of any initiatives in joint investments such as agricultural processing and the transportation industries. Both countries have decided to promote Small Business initiatives in both countries by allowing trade between them.

The majority of exports from the United States to India include: aviation equipment, engineering materials and machinery, instruments passe in optical and medical sectors, fertilizers, and stones and metals.

Below are the percentages of traded items India to US increased by 21.12% to $6.94 billion.

1. Diamonds & precious stones (25%)

2. Textiles (29.01%)

3. Iron & Steel (5.81%)

4. Organic Chemicals (4.3%)

5. Machinery (4.6%)

6. Electrical Machinery (4.28%)

Major items of export from U.S. to India: For the year 2006, figures are available up to the month of April. Merchandise exports from US to India increased by 20.09.26% to US $2.95 billion. Select major items with their percentage shares are given below

1. Engineering goods & machinery (including electrical) (31.2%)

2. Precious stones & metals (8.01%)

3. Organic chemicals (4.98%)

4. Optical instruments & equipment (7.33%)

5. Aviation & aircraft ( 16.8%)

The trade between the United States and India is relatively small but is raising sharply with time. However, India’s share in US trade is 24th in US export and eighteenth in US imports. The two countries have been making efforts to strengthen institutional structure of bilateral economic relations. Signing of “India-US Economic Dialogue” by the former Indian PM AB Vajpayee and US President Bill Clinton in 2003 aimed at deepening the Indo-American partnership through regular dialogue and engagement. The agreement was a major breakthrough in the Indo-US trade relations. The trade in turn accounts for an assured employment for a colossal section of the Indian and American society.

Technology trade between India and US

THE INDO-US strategic partnership got a major boost with both the countries pledging to step up cooperation in non-military nuclear activities, civilian space programmes and high-technology trade and expand dialogue on missile defence during the tenure of the former PM Mr. Atal Bihari Vajpayee and the then US President Bill Clinton.

Much talked about is the Indo-US Civil nuclear agreement. The Indo-U.S. civilian nuclear agreement is the name commonly attributed to a bilateral agreement on nuclear cooperation between the United States of America and the Republic of India. The framework for this agreement was a joint statement by IndianPrime Minister Manmohan Singh and U.S. President George W. Bush, under which India agreed to separate its civil and military nuclear facilities and place civil facilities under International Atomic Energy Agency (IAEA) safeguards and, in exchange, the United States agreed to work toward full civil nuclear cooperation with India [32].

On August 1, 2008, the IAEA approved the safeguards agreement with India [33], after which the United States approached the Nuclear Suppliers Group (NSG) to grant a waiver to India to commence civilian nuclear trade [34]. The 45-nation NSG granted the waiver to India on September 6, 2008 allowing it to access civilian nuclear technology and fuel from other countries. The implementation of this waiver makes India the only known country with nuclear weapons which is not a party to the Non Proliferation Treaty (NPT) but is still allowed to carry out nuclear commerce with the rest of the world [35].

The US House of Representatives passed the bill on 28 September 2008. Two days later, India and France inked a similar nuclear pact making France the first country to have such an agreement with India. On October 1, 2008 the US Senate also approved the civilian nuclear agreement allowing India to hold nuclear fuel and technology from the United States.

U.S. President, George W. Bush, signed the legislation on the Indo-US nuclear deal, approved by the U.S. Congress, into law, now called the United States-India Nuclear Cooperation Approval and Non-proliferation Enhancement Act, on October 8, 2008 [31]. The agreement was signed by Indian External Affairs Minister Pranab Mukherjee and his counterpart Secretary of State Condoleezza Rice, on 10 October [32, 33].

There was speculation the Indo-US deal would be signed on October 4, 2008 when U.S. Secretary of Location Condoleezza Rice was in India. The deal was to be inked by Indian External Affairs Minister Pranab Mukherjee and U.S. Secretary of State Condoleezza Rice. The two leaders were to sign the deal at 2 pm at the Hyderabad House in New Delhi [28]. But Mr. Mukherjee announced that India would wait for the US President to sign the 123 agreement legislation first into law and address India’s concerns on fuel supply guarantees and the legal standing of the 123 agreement in the accompanying signing statement [29].

Ms Rice was aware of the Indian decision before she left Washington. But she was very hopeful that the deal would be signed as the US state department had said that the President’s signature was not prerequisite for Rice to ink the deal [30]. Rice had earlier said that there were still a number of administrative details to be worked out even as she insisted that the US would abide by the Hyde Act on the testing issue:

In Washington, a Senate Democratic aide said such a delay was not that unusual because legislation needed to be carefully reviewed before being sent to the White House.

US President George W Bush signed the legislation on the Indo-US nuclear deal into law on October 8 [29]. The new law, called the United States-India Nuclear Cooperation Approval and Non-proliferation Enhancement Act, was signed by President Bush at a brief White House function in the presence of the Secretary of Spot Condoleezza Rice, Energy Secretary Samuel Bodman, Vice-President Dick Cheney and the Indian Ambassador to the U.S. Ronen Sen besides a large gathering of other dignitaries.The final administrative aspect of the deal was completed after Secretary of Plot Condoleezza Rice and External Affairs Minister Pranab Mukherjee signed the bilateral instruments of the 123 Agreement in Washington on October 10 paving the way for operationalization of the deal between the two countries.

Chronology of the Indo-US Nuclear Deal

July 18, 2005: President Bush and Prime Minister Singh first announce their intention to enter into a nuclear agreement in Washington.

March 1, 2006: Bush visits India for the first time.

March 3, 2006: Bush and Singh issue a joint statement on their growing strategic partnership, emphasising their agreement on civil nuclear cooperation.

July 26, 2006: The US House of Representatives passes the ‘Henry J Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006,’ which stipulates that Washington will cooperate with Recent Delhi on nuclear issues and exempt it from signing the Nuclear Nonproliferation Treaty.

July 28, 2006: In India, the Left parties question threadbare discussion on the notify in Parliament.

November 16, 2006: The US Senate passes the ‘United States-India Peaceful Atomic Energy Cooperation and US Additional Protocol Implementation Act’ to “exempt from certain requirements of the Atomic Energy Act of 1954 United States exports of nuclear materials, equipment, and technology to India.”

December 18, 2006: President Bush signs into law congressional legislation on Indian atomic energy.

July 27, 2007: Negotiations on a bilateral agreement between the United States and India conclude.

Aug 3, 2007: The text of the ‘Agreement for Cooperation between the Government of the United States of America and the Government of India concerning still uses of nuclear energy’ (123 Agreement) is released by both governments.

Aug 13, 2007: Prime Minister Manmohan Singh makes a suo motu statement on the deal in Parliament.

Aug 17, 2007: The CPI(M) General Secretary Prakash Karat says the ‘honeymoon (with government) may be over but the marriage can go on’.

Sept 4, 2007: In India, the UPA-Left committee to discuss nuclear deal set up.

Feb 25, 2008: Left parties in India say the ruling party would have to choose between the deal and its government’s stability.

March 3-6, 2008: Left parties warn of ‘serious consequences’ if the nuclear deal is operationalised and set a deadline asking the government to make it clear by March 15 whether it intended to proceed with the nuclear deal or drop it.

March 7-14, 2008: The CPI writes to the Prime Minister Singh, warns of withdrawal of support if government goes ahead with the deal and puts political pressure on the Manmohan Singh government not to go with the deal.

April 23, 2008: The Indian Government says it will seek the sense of the House on the 123 Agreement before it is taken up for ratification by the American Congress.

June 17, 2008: External Affairs Minister Pranab Mukherjee meets Prakash Karat, asks the Left to allow the government to go ahead with International Atomic Energy Agency (IAEA) safeguards agreement.

June 30, 2008: The Indian Prime Minister says his government prepared to face Parliament before operationalising the deal.

July 8, 2008: Left parties in India withdraw support to government.

July 9, 2008: The draft India-specific safeguards accord with the IAEA circulated to IAEA’s Board of Governors for approval.

July 10, 2008: Prime Minister Manmohan Singh calls for a vote of confidence in Parliament.

July 14, 2008: The IAEA says it will meet on August 1 to consider the India-specific safeguards agreement.

July 18, 2008: Foreign Secretary Shivshankar Menon briefs the IAEA Board of Governors and some NSG countries in Vienna on the safeguards agreement.

July 22, 2008: Government is willing to look at “possible amendments” to the Atomic Energy Act to ensure that the country’s strategic autonomy will never be compromised, says Prime Minister Singh.

July 22, 2008: The UPA government lead by Manmohan Singh wins trust vote in the Lok Sabha in India.

July 24, 2008: India dismisses warning by Pakistan that the deal will accelerate an atomic arms race in the sub-continent.

July 24, 2008: India launches full blast lobbying among the 45-nation NSG for an exemption for nuclear commerce.

July 25, 2008: IAEA secretariat briefs member states on India-specific safeguards agreement.

Aug 1, 2008: IAEA Board of Governors adopts India- specific safeguards agreement unanimously.

Aug 21-22, 2008: The NSG meet to consider an India waiver ends inconclusively amid reservations by some countries.

Sep 4-6, 2008: The NSG meets for the second time on the issue after the US comes up with a revised draft and grants waiver to India after marathon parleys.

Sept 11, 2008: President Bush sends the text of the 123 Agreement to the US Congress for final approval.

Sept 12, 2008: US remains calm over the controversy in India triggered by President Bush’s assertions that nuclear fuel supply assurances to New Delhi under the deal were only political commitments and not legally binding.

Sept 13, 2008: The Site Department issues a fact sheet on the nuclear deal saying the initiative will help meet India’s growing energy requirements and strengthen the non- proliferation regime by welcoming Original Delhi into globally accepted nonproliferation standards and practices.

Sept 18, 2008: The Senate Foreign Relations Committee kicks off a crucial hearing on the Indo-US nuclear deal.

Sept 19, 2008: America’s nuclear fuel supply assurances to India are a “political commitment” and the government cannot “legally compel” US firms to sell a “given product” to Unique Delhi, top officials tells Congressional panel.

Sept 21, 2008: US financial crisis diverts attention from N-deal as both the Bush Administration and the Congress are bogged down over efforts to rescue bankrupt American banks. Financial crisis in the country.

Sept 26, 2008: PM Singh meets President Bush at the White House, but was not able to sign the nuclear deal as the Congress did not approve it.

Sept 27, 2008: House of Representatives approves the Indo-US nuclear deal. 298 members voted for the Bill while 117 voted against.

Oct 1, 2008: Senate approves the Indo-US civil nuclear deal with 86 votes for and 13 against.

Oct 4, 2008: Secretary of State Rice visits Delhi. India and the US unable to ink the nuclear agreement with New Delhi insisting that it would do so only after President Bush signs it into a law, an occasion when it expects certain misgivings to be cleared.

Oct 4, 2008: White House announces that President Bush will price the legislation on the Indo-US nuclear deal into a law on October 8.

Oct 8, 2008: President Bush signs legislation to effect the landmark US-India civilian nuclear agreement.

Oct 10, 2008: The 123 Agreement between India and US is finally operationalized between the two countries after the deal is signed by External Affairs Minister Pranab Mukherjee and his counterpart Secretary of State Condoleezza Rice in Washington D C.

Concluding remarks

The above chronology of the trends between US and India is chubby of crests and troughs. However, both the countries have successfully managed to come up to the expectations of their citizens. The rising interdependence and assistance of one over the other shall be useful, is hoped. Also the transparency in the present industrial, political and economic scenario has brought about greater number of people trying to exercise their views through powerful means of media like blogs. It is hoped that the government shall refer and talk to the people of the nations before taking momentous decisions. The people of both the nations have gradually understood the importance of right to information and shall be informed and referred to when the matter of a country comes up.

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