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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. The new century, however, has witnessed a sea change in bilateral relations, with far more positive interactions becoming the norm. Today, President George W. Bush calls India a "natural partner" of the United States and his Administration seeks to assist India's rise as a major power. In July 2005, President Bush and Indian Prime Minister Manmohan Singh issued a Joint Statement resolving to establish a "global partnership" between their two countries through increased cooperation on numerous economic, security, and global issues. In this Joint Statement, the Bush Administration dubbed India "a responsible state with advanced nuclear technology" and vowed to achieve "full civilian nuclear energy cooperation" with India. As a reversal of three decades of U.S. nonproliferation policy, such proposed cooperation is controversial and would require changes in both U.S. law and international guidelines (Congress has taken action on enabling legislation -- H.R. 5682 and S. 3709 -- in the summer of 2006). Also in 2005, the United States and India signed a ten-year defense framework agreement that calls for expanding bilateral security cooperation. Since 2002, the United States and India have engaged in numerous and unprecedented combined military exercises. Discussions of possible sales to India of major U.S.-built weapons systems are ongoing. Continuing U.S. interest in South Asia focuses on ongoing tensions between India and Pakistan, a problem rooted in unfinished business from the 1947 Partition and competing claims to the Kashmir region. The United States strongly encourages maintenance of an international cease-fire in Kashmir and continued, substantive dialogue between India and Pakistan. The United States also seeks to curtail the proliferation of nuclear weapons and ballistic missiles in South Asia. Both India and Pakistan have resisted external pressure to sign the major nonproliferation treaties. In May 1998, the two countries conducted nuclear tests that evoked international condemnation. Proliferation-related restrictions on U.S. aid were triggered, then later lifted through congressional-executive cooperation from 1998 to 2000. Remaining sanctions on India (and Pakistan) were removed in October 2001. U.S. concerns about human rights issues related to regional dissidence and separatism in several Indian states continue. Strife in these areas has killed tens of thousands of civilians, militants, and security forces over the past two decades. Communal tensions, religious freedom, and caste-based and gender discrimination have been other matters of concern. Many in Congress, along with the State Department and human rights groups, have criticized India for perceived abuses in these and other areas. 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. Yet there is U.S. concern that such movement remains slow and inconsistent. This report replaces CRS Issue Brief IB93097, India-U.S. Relations.
