Highlight the importance of United States to the Indian growth story.
What are the irritants in the relationship between two countries? Comment
on them.


Ans: Globalisation and rise of china has inevitably led to good relations between US and
India. In the present context of India's desire to eliminate poverty,economic betterment
and entry to the united nations security council hinges largely upon it's relation with the
US.
Importance
-Ebergy security-India's focus on renewable energy and nuclear energy largely depends
on technology transfer and investments from US companies.
-Trade Relations-India's hopes of reviving it's manufacturing industry through Make in
India depends upon the US investment.India's agriculture sector and food processing
industry has a lot to learn from and co-operate its american counterparts
-People to People relations-Better relations will lead to cross border flow of information
and ideas that will help India in developing its knowledge economy
-Huge remittances from US help India reduce its CAD therefore assumes high
importance
-Threat of terrorism to both the countries have led to better co-opertaion between the
two contries in ensuring internal security
Major Irritants
-Nuclear Liability Bill-Liability of the suppliers under section 46 of the nuclear liability
of the bill has impeded the expected co-operation.Fear of US companies to be dragged
into court cases by the victims and the compenstion to be paid in the aftermath of
nuclear disasters has alienated them from investments
-Environmental Issues-Indian stand of common but differentiated responsibility and
US' stand pf uniform responsibility has led to deadlock over any global agreements
-Pakistan-US' continued financial aid to Pakistan and it's reluctance to pressurise
despite its tacit support to the terrorist organisations operating from its soil has been a
stumbling block for the two countries
-India‘s solar policy which stipulates that the equipment to be used should be
indigenous is also a bone of contention between the two nations as US feels this policy to
fillip ‗make in India‘ campaign is against its companies and has challenged this policy at
WTO.
-Visa Issues-Stringent regulations on Indian emigrants has been a bone of contention
-IPR regulations-India's insistence on availability and affordability of drugs and US
pharma companies allegations of violations of IPR rules has led to reluctance of US
pharma companies to invest in R&D.