Upon assuming the Presidency in January 2001, President George Bush Jr had identified India as an important actor in the globe and a pre-eminent power in South Asia. Although the relationship between the United States and India has been on a roller coaster ride for the previous five decades, their changing strategic and economic interests have brought both the nations closer.

Beginning with 2000, a number of high profile visits, including that of President Bill Clinton, and Prime Minister Vajpayee’s repeated visits to the United States, several US and Indian high level dignitaries have visited each other’s capitals to work out adjustments in core areas of mutual interest.

As India’s largest trading and investment partner, US exports to India in 2000 were $3.7 billion, while US imports from India totaled nearly $11 billion. Computer software exports accounted for another $4 billion. After Robert Zoellick, US Trade Representative in the Bush Administration, visited India, it is taking rigorous steps to reduce tariffs and take appropriate measures to attract more investors. The US Administration has appreciated the passing of the Insurance Regulatory and Development Authority Bill that will open India’s insurance industry to foreign private insurers. President Bush’s proclamation on 22 September 2001 that the status quo ante as of May 1998 was restored and all economic sanctions imposed pursuant to Glenn Amendment were lifted was very helpful.

Both India and the United States have also embarked upon extensive defence cooperation. Both sides are committed to exploring further avenues of cooperation within a new strategic framework for South Asia in which India has a vital role to play. In particular, there was agreement to broaden relations in civilian space and nuclear cooperation, apart from dual-use items, materials and technologies.

A significant aspect of the emerging US policy of engagement with India is in the growing military ties between them. In February 2001, the US Navy participated in the international fleet review sponsored by the Indian Navy, off the coast from Mumbai; it was the first such occasion for the US Navy. The two navies have cooperated in securing the maritime trade routes between the Suez Canal and the Straits of Malacca for maintaining stability among the littoral states surrounding the Indian Ocean. An Indo-US joint military exercise took place in Agra in May 2002 with air para troopers from both countries participating. In Alaska, the US Army 1^st Battalion 501^st Para Infantry Regiment and India’s 50(1) Para Brigade took part in joint training exercise in September 2002 in sub-zero temperature. The newly created Indo-US Defence Policy Group (DPG) will enhance military cooperation between the two countries in the future.

The United States has accepted India’s request for border sensors and equipment for its special forces on a high priority basis and has also given the go ahead for the sale of GE engines and advanced avionics for India’s indigenous Light Combat Aircraft and leasing US weapon-locating radars.

In the crusade against international terrorism after September 11, India offered the United States both moral and material support in various areas. India’s active support for the Bonn Peace Conference that led to the installation of the Hamid Karzai government in Kabul and initiated a nation building process in Afghanistan has received accolades at the highest level of US Administration. Both US and India have worked together in the UN and other forums to build support for UNSCR 1373 and the India sponsored Comprehensive Convention against International Terrorism. These timely actions have contributed to arresting terrorists and dismantling terrorists’ networks.  The actions undertaken by both India and the United States have also helped in freezing their financial assets and those of their supporters.

As active partners in the war against international terrorism, both India and the United States have taken concrete steps to curb cyber terrorism. Hopefully the newly created US-India Cyber Security Forum will safeguard individual privacy rights and allow for the widest possible dissemination of knowledge sharing.

It is hoped that accommodation and mutual appreciation of views will take the relationship between the two countries to greater heights. Engaging India is the new mantra in Washington. This ‘paradigm shift’ in Indo-US relations will usher in far reaching changes with both nations continuing their cooperation while keeping their national interests intact.