Introduction
In 2025, India–U.S. relations face visible political strain, including U.S. trade sanctions on India and closer U.S. engagement with Pakistan. The postponement of the Quad Leaders’ Summit hosted by India highlights diplomatic unease.
Despite these challenges, the foundational cooperation between the two countries remains intact and forward-moving.High-level visits by India’s External Affairs Minister and Navy Chief to the U.S. signal continued engagement beneath the political surface.
Trade Tensions and Shifting Economic Alignments in Indo US Relations
- India’s exports to the U.S. fell sharply in 2025, reflecting deteriorating trade relations. U.S. tariffs on Indian goods and penalties linked to India’s purchase of Russian crude have exacerbated economic frictions.
- In contrast, China and Pakistan benefit from relatively lower tariffs and strengthened U.S. ties. Pakistan’s economic concessions, including port access and critical mineral supplies, underline Washington’s pragmatic, interest-based approach.
Quad Delays but Remains Operationally Relevant
The delay of the Quad Leaders’ Summit reflects bilateral and geopolitical tensions, including perceptions of a U.S.–China “G-2” style rapprochement. However, Quad cooperation continues at the working level.
The July 2025 Quad Foreign Ministers’ Meeting in Washington launched initiatives across maritime security, counterterrorism, critical technologies, and humanitarian assistance. The Quad Counterterrorism Working Group meeting in December 2025 reaffirmed the grouping’s functional relevance beyond summit diplomacy.
The parallel tracks that keep the U.S.-India ties going
- Defence Cooperation as the Backbone
- Defence and security cooperation remain the most resilient pillar of India–U.S. relations.
- A decade-long Defence Framework Agreement signed in October 2025 strengthens coordination, information sharing, and technological collaboration.
- Regular joint military exercises—Yudh Abhyas, Tiger Claw, and Malabar—continue to enhance interoperability and trust between armed forces.
- Defence ties are framed as central to maintaining Indo-Pacific stability and deterrence.
- Institutionalised Defence and Technology Frameworks
- Since the 2008 civil nuclear deal, defence and technology agreements have steadily deepened bilateral ties.
- Key agreements include LEMOA (2016), COMCASA (2018), BECA (2020), INDUS-X (2023), and the Initiative on Critical and Emerging Technologies (2023).
- The 2024 Security of Supply Arrangement (SOSA) further institutionalised defence logistics and industrial cooperation.
- These frameworks ensure continuity even during periods of political friction.
- Expanding Technological and Industrial Collaboration
- Hindustan Aeronautics Limited’s billion-dollar fighter jet engine deal with General Electric in November 2025 marks a major industrial milestone.
- The joint NASA–ISRO NISAR satellite, launched in July 2025, strengthens cooperation in disaster management, agriculture, and infrastructure planning.
- These projects demonstrate the growing depth of high-technology collaboration beyond defence.
Dual-Track Indo-US Relationship- Politics vs Institutions
- The India–U.S. partnership operates on a dual-track model- fluctuating political diplomacy alongside stable institutional cooperation.
- Bureaucratic and defence institutions continue collaboration despite leadership-level or trade-related tensions.
- While regulatory hurdles and technology interoperability issues remain, shared regional interests sustain momentum.
The Way Forward for Deepening Indo-US Institutional Understanding
- Looking toward 2026, deeper institutional engagement in the Indo-US relationship- across defence and non-defence sectors- is essential.
- Building understanding of each other’s systems, processes, and institutions can strengthen trust.
- The long-term resilience of India–U.S. relations depends on these institutional channels, which quietly preserve strategic relevance despite political headwinds.
Source: The Hindu
