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India-U.S. Relations (CRS Report for Congress)

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Release Date Revised May 26, 2006
Report Number IB93097
Authors K. Alan Kronstadt, Foreign Affairs, Defense, and Trade Division
Source Agency Congressional Research Service
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Summary:

The end of the Cold War freed India-U.S. relations from the constraints of global bipolarity, but interactions continued for a decade to be affected by the burden of history, most notably the longstanding India-Pakistan rivalry and nuclear weapons proliferation in the region. Recent years, however, have witnessed a sea change in bilateral relations, with more positive interactions becoming the norm. India's swift offer of full support for U.S.-led counter-terrorism operations after September 2001 was widely viewed as reflective of such change. Today, President Bush calls India a 'natural partner of the United States' and his Administration seeks to assist India's rise as a major power in the new century. […] India is in the midst of major and rapid economic expansion. Many U.S. business interests view India as a lucrative market and candidate for foreign investment. The United States supports India's efforts to transform its once quasi-socialist economy through fiscal reform and market opening. Since 1991, India has taken steps in this direction, with coalition governments keeping the country on a general path of reform. However, there is U.S. concern that movement remains slow and inconsistent. See also CRS Report RL33072, 'U.S.- India Bilateral Agreements in 2005'; CRS Report RL32259, 'Terrorism in South Asia'; and CRS Report RS21502, 'India-U.S. Economic Relations.'
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