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Polity, Governance and Current Affairs

India's Relations with Major Powers

Indian Foreign Policy: Determinants, Major Powers, Neighbours, Diaspora and Cultural Diplomacy

Paper III · Unit 1 Section 4 of 11 0 PYQs 30 min

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India's Relations with Major Powers

3.1 India-United States

Evolution of the Relationship

  • Cold War: US tilted toward Pakistan (SEATO/CENTO); Nixon sent USS Enterprise to Bay of Bengal during 1971 war
  • Post-1991: Gradual normalisation; 1998 Pokhran tests led to sanctions (lifted after 9/11)
  • Post-2001: Strategic convergence — shared concerns about terrorism and China's rise
  • 2005 NSSP2008 Civil Nuclear Agreement — US accepted India as de facto nuclear power outside NPT
  • 2023 iCET: Semiconductor (Micron $2.75 billion fab in Gujarat), AI, quantum, space, advanced telecom

Key Defence Agreements

Agreement Year Significance
GSOMIA (General Security of Military Information Agreement) 2002 Protected classified military information exchange
LSA (Logistics Support Agreement) 2016 Military logistics support at each other's bases
COMCASA (Communications Compatibility and Security Agreement) 2018 Encrypted communications on US-origin defence equipment
BECA (Basic Exchange and Cooperation Agreement) 2020 Geospatial intelligence sharing
Civil Nuclear Agreement 2008 US-India nuclear cooperation; waiver at NSG

Current State (2024–25)

  • India-US Comprehensive Strategic Partnership operative
  • PM Modi's June 2023 state visit: GE engines for LCA Tejas, Micron semiconductor investment, PM MITRA textile scheme, space exploration partnership

3.2 India-Russia

Historical Foundation

  • India-USSR Friendship Treaty (1971) — crucial during Bangladesh liberation war
  • Russia inherited all Soviet obligations and bilateral assets

Current Relationship

  • Bilateral trade surged from $11 billion (2021–22) to $65 billion (2023–24) — India imports Russian crude at discounted prices post-Ukraine War
  • India is Russia's 4th largest oil customer (from near-zero in 2021 to 1.5 million barrels/day by 2024)
  • Defence dependence: S-400 (air defence), T-90 tanks, INS Vikramaditya, Su-30 MKI, BrahMos missile (joint venture; $3+ billion export orders)
  • Russia's post-Ukraine isolation makes India more strategically valuable; India walks a tightrope between Russia and the Western alliance
  • Both are members of SCO (Shanghai Cooperation Organisation); India joined as full member in 2017

3.3 India-China

Overview

India and China share a 3,488 km border (Line of Actual Control — LAC). Relations oscillate between cooperation and confrontation.

Key Flashpoints

  • 1962 Sino-Indian War — China occupied Aksai Chin; Nehru's "forward policy" failed
  • Doklam standoff (2017) — 73-day standoff over Bhutan-China border construction near India's Siliguri Corridor
  • Galwan Valley clash (15 June 2020) — 20 Indian soldiers + estimated Chinese casualties; India banned 200+ apps (TikTok etc.); FDI screening from China tightened
  • October 2024: Patrolling agreement at 4 friction points (Depsang Plains, Demchok, Gogra-Hotsprings, Galwan) — partial normalisation
  • PM Modi–Xi Jinping bilateral at BRICS Kazan (October 2024) — first formal meeting in 5 years

Economic Dimension

  • Bilateral trade: $136 billion (2023) — India has a $85 billion trade deficit with China
  • Indian pharma imports Chinese APIs; China embedded in India's electronics supply chain

India's China Strategy

  • Diversification: PLI schemes to reduce supply chain dependence
  • Indo-Pacific partnerships: QUAD, alignment with AUKUS without membership
  • Dual track: Maintain LAC vigilance while keeping diplomatic dialogue open

3.4 India-European Union

India-EU Strategic Partnership was relaunched at the Porto Leaders' Meeting (May 2021). India-EU FTA negotiations resumed in 2022 after a decade-long stall.

Key metrics:

  • EU is India's 3rd largest trading partner (goods + services): $130+ billion (2023)
  • India-EU Connectivity Partnership (2021): covers digital, energy, and transport infrastructure
  • France is India's largest European defence partner — Rafale jets (36 acquired; 26 naval Rafale in progress); Scorpène submarines; France strongly supports India's permanent UNSC seat

3.5 India-Japan

  • Japan-India Special Strategic and Global Partnership (2014)
  • Japan is India's top development lender — JICA finances the Mumbai-Ahmedabad High Speed Rail (bullet train)
  • Defence co-production: submarine technology transfer discussions; defence equipment agreements
  • Both are QUAD members; Japan's "Free and Open Indo-Pacific (FOIP)" strategy aligns with India's Act East