• Global politics is changing at a fast pace. 
• The global order is now dipping into a vortex of disruptions largely caused by the United States, China (Trade war)and Brexit. 
• India also stands at the crossroads in terms of its foreign policy approach.

India’s Foreign policy  options:

• Stable policy of non-alignment and strategic autonomy;
•  Join the bandwagon of unilateralism and be a permanent treaty ally of one of the superpowers,
• Embark upon a calculated trip with the objective of expansion in terms of forging new relations and exploring fresh territories by adopting a strategy of “multi-alignment and transactional autonomy”.

Concerns in IND-US Relations:

• A  no-trade deal, 
• U.S.-Pakistan bonhomie

Trade deal failure:

• The prospects of an agreement unravelled due to the failure to reach an agreement on Information and communications technology (ICT) products. 

U S Wanted,

• The U.S. has wanted India to eliminate tariffs (20%) on ICT products, but New Delhi is concerned that this could open up the market to flooding by Chinese technology.
• The U.S. wanted greater access to Indian markets for medical devices, such as stents and knee implants, ICT and dairy products and sought the removal of price caps.
• The US had sought the removal of price caps (“Trade Margin Rationalization” or TMR) on medical devices and greater access for dairy products and some other categories of agricultural goods.

 India wanted,

• The reinstatement of preferential market access to U.S. markets under the Generalized System of Preferences (GSP) program, which was revoked in early June. 
• It had also wanted facilitation of processes in agricultural product markets where it already had access (such as easier certification of food product irradiation facilities) 
• Greater access in some agricultural markets (table grapes, pomegranates for instance),

US-Pakistan Bonhomie:

• United States has been one of the largest sources of foreign direct investment in Pakistan and is Pakistan’s largest export market.  
• Trade relations between the United States and Pakistan continue to grow 
• The U.S. government supports this relationship by funding reverse trade delegations, business conferences, technical assistance, and business outreach.

Ind-US  Relations

Good shades :

• India-U.S. civil nuclear deal, the ongoing defence cooperation of the past decade worth billions of dollars 
• The signing of three “foundational defence agreements”, i.e. the Communications Compatibility and Security Agreement, the Logistics Exchange Memorandum of Agreement and the Basic Exchange and Cooperation Agreement for Geo-spatial Cooperation.

Bad shades :

• Current trade challenges, 
• The U.S.’s hyphenation of India with China in its trade war 
• U S call for the removal of the “developing country” tag assigned by the WTO.
• During the 1971 war, the U.S. sent its fleet towards India to assist Pakistan.
• India’s procurement of defence material from Russia 
• US  unreal expectations such as India having military boots on the ground in Afghanistan.

Concerns:

• The recent and abrupt abandonment by the Trump administration of the Kurds who assisted the Americans in fighting the Islamic State both in terms of resources and manpower should serve as a warning sign to India in terms of its Afghanistan strategy
• The current Indian dispensation must prepare for the eventuality of a sudden withdrawal of U.S. forces from Afghanistan which could lead to a complete takeover by the Taliban, with potential repercussions on India’s northern front.
• With respect to Pakistan, there is confused signalling from the official “advisers” of the White House
• The U.S. campaigned for Iran’s nuclear deal in 2015, then withdrew itself from the accord in 2018 and has now adopted a blanket sanction policy qua any nation dealing in oil transactions with Iran.

Way forward:

• Before taking any decision on the future trajectory of India-U.S. dynamics, the Indian establishment must remain mindful of the unpredictability and inherent contradictions in U.S. foreign policy 
• At the same time, capitalise on U.S. “isolationism and retrenchment” by maintaining its time-tested policy of “non-alignment and strategic autonomy”.
• The Prime Minister must ensure that India-U.S. bilateralism survives the axe of unilateralism without sacrificing India’s “sweet spot” and tag of being “everyone’s friend”.
•  Mr. Trump needs to realise that India at this juncture cannot afford to get derailed from the tracks of globalisation, regional alliances, trade opportunities

Conclusion:

• The convergence of perception between India and the U.S. on global and regional issues of common interest provides enormous opportunities for both countries to work closely in reshaping the global political order.