Economic Relevance of Changing Indo-American Relation

Despite being one of the pioneers and founding members of the Non-Aligned Movement, India developed a closer relationship with the Soviet Union during the Cold War. India's strategic and military relations with Moscow and strong socialist policies had an adverse impact on its relations with the United States. After the collapse of the Soviet Union, India began to review its foreign policy in a univocal world following which; it took steps to develop closer ties with the European Union and the United States. Today, India and the U.S. share an extensive cultural, strategic, military and economic relationship

During the tenure of the Clinton and Bush administration, relations between India and the United States blossomed primarily over common concerns regarding growing Islamic extremism, energy security and climate change.

According to some foreign policy experts, there was a slight downturn in India-U.S. relations following the election of Barack Obama as the President of the United States in 2009. This was primarily due to Obama administration’s desire to increase relations with China, and Barack Obama's protectionist views on dealing with the economic crisis. However, the leaders of the two countries have repeatedly dismissed these concerns.

As has already been reported the presidential visit will lead to tens of billion of dollars of businesses over the next several years in areas as divers as agriculture, clean energy, defense and infrastructure among others, creating tens of thousands of jobs in both countries.

American companies will get to do more technology business with India and this will create jobs in the US. The technology transfer and offset business will create more opportunities for companies like Hindustan Aeronautics and Bhahrat Electronics in the Public sectors ands big corporate players like the TATA’s, Infosys, Wipro and HCL.

Engineering and design stalwart in India will combine with American Technology and innovation to create a win- win cycle of incremental business for each other.

The American side sees growth here and there will be more US companies doing business as the level of trust goes up further.

India is one of the largest buyers of foreign made munitions. There have been decade of mutual mistrust and Russia has always been India’s primary military hardware supplier with US at distant sixth place. After this visit one could very well expect US jumps to the second spot in terms of military equipment supplier to India. Outstanding military agreement could include proposal to safe guard American defense technology that will be used by India hence forth. Sharing of geo spatial data and guarantee of logistic support

The US is known for innovation and India is known for talent, especially in sectors like information technology. Two combining together to create benefits for both sides.