Change in US Government Policy and its Expected Impact on India-US Trade Relationship

The relationship between the United States and India is focused on a mutual commitment to democracy, democratic values, fair treatment of all people, human rights, and the rule of law. In fostering global security, peace, and economic growth through trade, investment, and connectivity, the United States and India have common interests. In an attempt to ensure that the Indo-Pacific is a region of peace, security, and increasing growth, the United States supports India's emergence as a leading global force and a vital partner. A tremendous source of strength for the relationship is the close people-to-people links between our nations, expressed in a four million-strong Indian American diaspora.

In December 2019, in Washington, the U.S. Government made a second 2+2 Ministerial Dialogue coordinated by the United states. The Bureaus of State and Defense and their Indian equivalents reiterated India's role as a main defense partner on mutual sides and enhanced cooperation on interoperability, maritime security,  and the exchange of knowledge. Though 2+2 is the leading platform for dialogue between the United States and India, there are more than 30 bilateral dialogues and working groups covering all facets of human activity, from space and health cooperation to energy and high-tech trade. These include the Joint Working Group on Counterterrorism between United States and India, which was formed in 2000 and is one of the extended government to government dialogues, along with the Cyber Dialogue, Strategic Energy Partnership, Trade Policy Forum, Civil Space Working Group, Security Policy Group and many more.

The American Government proposes an improved, equitable and fair trade relationship with India. In 2019, total bilateral trade in goods and services between the U.S. and India reached USD 149 billion. A major area of development in the trade relationship is U.S. energy exports.

India imported 48.2 billion tons of U.S. crude oil in 2018, a major jump from 9.6 million in 2017. Over USD 8 billion was added to the U.S. economy by Indian students studying at U.S. colleges and universities last year.

Over the last decade, the overall number of Indian students in the US has more than doubled, from 81,000 in 2008 to a record high of 202,000 in 2019.

In terms of trade in goods and services, the US has surpassed China to become India's largest trading partner, led by China. Bilateral trade between the US and India in 2018-19 stood at USD 87.95 billion, according to the trade ministry's numbers. Though US-India bilateral trade accounts for approximately 62% of goods and 38% of services, bilateral trade between India and China is dominated by goods. While under the Barack Obama administration the drive for definite structures and structured communication networks began, the Trump dispensation continued to institutionalize US-India relations by setting frameworks in a way that maximized convergence.

Biden has advocated for closer ties with India for a long time, dating back to his days as chairman of the Foreign Affairs Committee of the Senate. In 2001, he performed a crucial role in repealing US sanctions on India along with securing the US-India nuclear agreement during the Senate in 2008, and the US named India a 'Big Defense Partner' when he was Vice President in the Obama administration. Recent developments such as the US-India 2+2 dialogue between the two countries' defense and foreign ministers and the signing of the Basic Exchange and Cooperation Agreement (BECA) underline the momentum gained by the relationship's defense and security aspects. BECA is the last of four defense permitting agreements negotiated by three separate US administrations to facilitate the better military cooperation, information distribution and emphasize the bilateral nature of US–India defense cooperation. Moreover, as Washington has become increasingly concerned about China's rising presence and assertiveness across Asia, under Biden, the Free and Open Indo-Pacific Policy, launched under the Trump administration and established in part as a way of acknowledging India's increasing position in the region, appears likely to continue in some capacity. For India, the possible return of human rights as a significant plank of US foreign policy has a flip side. While Biden has expressed his appreciation for the diversity and inclusiveness of India in the past, his campaign website and other Democratic Party members have expressed concerns about the potentially adverse human rights effects of some of the recent policies of the Indian government, such as the Citizenship Amendment Act and the restriction on political freedoms in Jammu and Kashmir(J &K) since the revocation of its special status in August 2019.

On day one, Biden will revoke Trump's "Muslim ban" and repeal the detrimental asylum policies that are triggering the humanitarian crisis and border chaos. He will instantly start acting with Congress to approve legislative immigration amendment to reform the system, with an emphasis on holding families together by delivering around 11 million undocumented migrants with a plan ahead to citizenship which includes around 500,000 from India. For green card holders, Biden will restore and defend the process of naturalization. And, by setting the annual global refugee admission target at 125,000, it will increase the number of refugees we welcome into this country and aim to raise it over time in line with our responsibility, our values, and the unprecedented global need. He will also operate with Congress to confirm a minimum of 95,000 refugees admissions annually.

Biden will direct the Department of State and the U.S. Citizenship and Immigration Services (USCIS) to identify methods and programs submitted by any faith-based organization with a reliable track record of faithfully using the religious worker visa program to streamline the review of religious worker visas.

Need More Information

Contact Us

+ 1-888-961-4454

Drop Us an email at

help@bigmarketresearch.com