The sanctions clouds over India US Ties

Synopsis: The debate in the US hovers around the efficacy of CAATSA related sanctions against India.

Introduction

India is all ready to welcome the delivery of S400 Triumf Air Defence system  from Russia as per the schedule. But this can bring drift between the India-USA relations. There is a possibility of imposing sanctions by the USA on India under the CAATSA. USA thinks it’s dangerous for any country to use the S400.

What is Countering America’s Adversaries through Sanctions Act (CAATSA)?

It is passed in 2016 by the USA to discourage trade in the defence and intelligence sectors of Russia.

Read more: What is “CAATSA” or Countering America’s Adversaries Through Sanctions Act?

What will be the implications of the sanctions on India?

If the USA imposes sanctions on India, it could further push India towards its traditional military hardware supplier Russia.

What are the India defence relations with Russia and the USA?

Russia: Over the last decade, India military purchase from Russia has steadily declined. According to SIPRI Report, Russia is the most affected supplier of India.  Indian imports of arms decreased by 33% between 2011-15 and 2016-20. Recently, deals of nearly $15bn are under negotiation.

USA: The USA designated India as a major defence partner in 2016. It also gave India Strategic Trade Authorization-1, which allows access to critical technologies. India-USA trade also reached $20bn and deals of $10bn are under negotiation.

Where does the future lie?

The CAATSA test will determine the trajectory that India-USA relations will take in the coming decades. To improve India – US relations, the US president can provide a waiver for India.

Source: This post is based on the article “The sanctions clouds over India US Ties” published in The Hindu on 13^th October 2021.