• India and the US are negotiating a bilateral trade agreement amid significant tariff pressures.
• The US has imposed 18% reciprocal tariffs on Indian goods under the new tariff regime.
• India-US relations are evolving from strategic convergence to operational alignment across multiple domains.
• The iCET (Initiative on Critical and Emerging Technologies) has deepened technology cooperation significantly.

Strategic Convergence

• India and the US share concerns about China’s military and economic assertiveness in the Indo-Pacific.
• Both nations are part of the Quad framework alongside Australia and Japan.
• India has signed all four foundational defence agreements — GSOMIA, LEMOA, COMCASA and BECA.
• The US has designated India a Major Defence Partner (MDP), enabling near-ally technology transfers.

Technology and Defence

• iCET covers semiconductors, AI, quantum computing, space and defence co-production domains.
• GE Aerospace signed a deal to co-produce F-414 jet engines in India for Tejas Mk2.
• India procured 31 MQ-9B armed drones worth USD 4 billion, strengthening maritime surveillance.
• The INDUS-X initiative connects Indian and American defence startups and research institutions.

Economic Ties

• Bilateral trade stands at approximately USD 190 billion annually, making the US India’s largest trade partner.
• The Indian IT sector contributes significantly to US technology companies and digital infrastructure.
• The US is India’s largest source of Foreign Direct Investment in services and technology.

People-to-People Ties

• The Indian-American diaspora of 4.4 million is among the most educated and prosperous immigrant communities.
• Over 2 lakh Indian students study in the US, contributing to bilateral educational and research ties.

• Trade Friction: US reciprocal tariffs of 18% on Indian goods create persistent bilateral trade tensions.
• CAATSA Risk: India’s S-400 purchase from Russia exposes it to potential US secondary sanctions under CAATSA.
• H-1B Visa Restrictions: Restrictions on H-1B visas adversely affect Indian IT professionals and technology companies.
• Strategic Autonomy Tension: India’s multi-alignment foreign policy conflicts with US expectations of exclusive strategic alignment.
• Market Access Barriers: US demands on agriculture, dairy, medical devices and e-commerce create persistent negotiation friction.
• Quad Uncertainty: Reduced US commitment to the Quad raises doubts about Indo-Pacific framework durability.