INTERNATIONAL RELATIONS TOPICS

INDIA-USA RELATIONS

GENERAL
The India-U.S. bilateral cooperation is broad-based and multi-sectoral, covering trade and investment,
defence and security, education, science and technology, cyber security, high-technology, civil nuclear
energy, space technology and applications, clean energy, environment, agriculture and health. Vibrant
people-to-people interaction and support across the political spectrum in both countries nurture our
bilateral relationship.
The relationship between the world's two biggest democracies is becoming ever closer, a step towards
fulfilling ex-U.S. President Barack Obama's prophesy that India and the United States would form "one
of the defining partnerships" of the 21st century.
The cooperation is under the motto --- ―Chalein Saath Saath: Forward Together We Go‖, and "Sanjha
Prayas, Sab ka Vikas" (Shared Effort, Progress for All) adopted during the summits of leaders of
both countries in September 2014 and January 2015 respectively.
POLITICAL AND STRATEGIC RELATIONS
1. India-U.S. bilateral relations have developed into a "global strategic partnership", based on
shared democratic values and increasing convergence of interests on bilateral, regional and global
issues.
2. Dialogue Mechanisms-
1) There are more than 50 bilateral dialogue mechanisms between the two governments. There
are Ministerial-level dialogues involving home (Homeland Security Dialogue), finance (Financial
and Economic Partnership), commerce (Trade Policy Forum), HRD (Higher Education
Dialogue), Science & Technology (Joint Commission Meeting on S&T) and energy (Energy
Dialogue).
2) A hotline has been established between the Prime Minister's Office and the U.S. White House.
3) Both countries have issued in 2015 a Delhi Declaration of Friendship and adopted a Joint
Strategic Vision for Asia-Pacific and the Indian Ocean Region.
3. There is convergence between the two nations in respect of issues important for both the countries
whether in respect of Pakistan, China, Indo-Pacific region, terrorism or Central Asia.
4. In respect of Pakistan-
1) PM Narendra Modi and U.S. President Donald Trump have issued a joint declaration wherein
they made counter-terrorism the cornerstone of mutual cooperation between the two countries.
2) It declared the responsibility of Pakistan to ensure that its territory is not used to launch terrorist
attacks on other countries and asked Pakistan to expeditiously bring to justice the perpetrators
of the 26/11Mumbai, Pathankot, and other cross-border terrorist attacks perpetrated by Pakistan
based groups.
5. In respect of China-
1) The joint statement issued recently, was the first time the United States and India have together
come out publicly against China‘s debt financing, connectivity projects, and human rights
record.
2) USA in a joint statement has echoed India's concerns over China's Belt and Road initiative.
3) Both countries have declared to take measures to strengthen their partnership in the Indo-
Pacific region; and they have reiterated the importance of respecting freedom of navigation,
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over flight, and commerce throughout the region; and called upon all nations to resolve territorial
and maritime disputes peacefully and in accordance with international law.
6. In respect of Afghanistan-
1) The USA has changed its Afghanistan policy from Af-Pak to Af-Pak-India under its newly
declared ‗US South Asia policy‘.
2) USA has declared that ―…we want them (India) to help us more with Afghanistan, especially in
the area of economic assistance and development‖.
3) The policy also talks about ensuring that Pakistan abides by its commitments. Now Pakistan will
be watched closely by the US to keep check that it does not become safe havens for terrorist
organizations.
4) India was earlier viewed as part of the problem and now Trump is arguing that India should be
viewed as part of a solution to the Afghan imbroglio.
Significance of the new policy-
1) India has welcomed United States President Donald Trump‘s new policy on Afghanistan, saying
his move will help target safe havens of terrorism in South Asia.
2) USA acknowledges India‘s importance and its significant role in stabilizing Afghanistan, but
wants it to do more, especially in the area of economic assistance and development.
3) American has clearly directed Pakistan that it should keep check on the terrorist activities
emanating from its soil.
4) By not asking India to contribute to the military front directly, the U.S. has spared New Delhi of a
major responsibility.
What should be India’s response-
1) A positive Indian approach would involve three elements — economic, security and diplomatic.
2) Firstly, India must ramp up its economic diplomacy in Afghanistan to bring immediate benefits to
Kabul amidst the deteriorating conditions in the country.
3) Secondly, Delhi must step up security cooperation with Afghanistan, especially in the training of
its police and armed forces and intelligence sharing.
4) Thirdly, on the diplomatic front, India must counter the emerging argument that Trump‘s new
approach will intensify the Indo-Pak rivalry in Afghanistan and the old argument that Kashmir
holds the key to peace in Afghanistan.
7. Both countries agreed to build on the implementation of the ―White Shipping‖ data sharing
arrangement. The agreement allows countries to share data on maritime traffic and domain
awareness.
8. Support for full membership in the four multilateral export control regimes
1) USA support has led India to become the member of the Missile Technology Control
Regime (MTCR), Australia group, Wassenaar Arrangement.
2) The United States continues to back India‘s bid for membership to the Nuclear Suppliers Group
9. Foundational Treaties LEMOA, BECA, CISMOA, LSA-
1) USA wants India to sign these agreements so that the cooperation can be further strengthened.
2) LSA refers to Logistics Support Agreement. This agreement would enable mutual exchange of
logistics support, supplies and services (LSSS) between the defence forces of both countries.

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3) BECA refers to Basic Exchange and Cooperation Agreement for Geo-spatial Cooperation. This
agreement would facilitate exchange of geospatial information between India and United States
for both military and civilian use.
4) CISMOA stands for Communication and Information Security Memorandum Agreement. This
agreement would allow the interoperability of India and United States equipments. By
interoperability, we mean that there would be access to encrypted and secret technologies or
communications.
5) India has in August 2016 signed one of these agreements i.e. LEMOA
(Logistics Exchange Memorandum of Agreement)
What is LEMOA
1) The agreement provides access to each other‘s military facilities for fuelling and logistic support
on a reimbursable basis.
2) It does not give the US automatic access to Indian military bases or to logistical support, but
simply smoothens existing practices.
3) The LEMOA does not make India an military ally of USA. LSA has been signed by around 100
countries, many of which are not US allies.
Benefits-
1) It provides for easier access to supplies and services for the military forces of the two countries
when they are engaged in specific types of activities. These activities are limited to joint military
exercises, training, port calls and humanitarian missions and other military activities that both
sides mutually agree to undertake.
2) LEMOA strengthens India‘s outreach to areas that were not typically within its reach. Signing
LEMOA opens up opportunities such as gaining access to US military bases in Djibouti and
Diego Garcia.
3) LEMOA has a greater significance in the maritime cooperation between the two countries in
Asia-Pacific.
4) Humanitarian assistance- The agreement will aid such humanitarian assistance like in cases of
natural disasters and evacuation from conflict zones.
5) LEMOA signifies the depth of India-US strategic ties.
Criticism of LEMOA
1) It is claimed that the signing of the agreement compromised on Indian sovereignty and India has
surrendered its strategic autonomy.
2) It might antagonise China and prompt it further to escalate tension along Indian border
3) Russia will necessarily begin distancing itself from India. Moscow may have no hesitation in
joining the China-Pakistan nexus to form a formidable strategic triad as counterweight to the
India-US partnership.
DEFENCE RELATIONS
1. New Framework for India-U.S. Defence Relations-
1) Defence relationship has emerged as a major pillar of India-U.S. strategic partnership with the
signing of ‗New Framework for India-U.S. Defense Relations‘ in 2005 and the resulting
intensification in defence trade, joint exercises, personnel exchanges, collaboration and
cooperation in maritime security and counter-piracy, and exchanges between each of the three
services.
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2) The Defence Framework Agreement was updated and renewed for another 10 years in June
2015.
2. Major Defence Partner
1) Washington has designated New Delhi a ―Major Defence Partner‖ in 2017 under which the the
USA will continue to work towards facilitating technology sharing with India to a level
commensurate with its closest allies.
2) Recognising India‘s status as a ‗Major Defence Partner‘, the US has made necessary changes
in its export control laws. The new rule that makes necessary changes in the export control laws
creates a presumption of approval for Indian companies seeking to import Commerce
Department-controlled military items, except Weapons of Mass Destruction-related goods. India
will be able to buy surveillance drones, UAVs, Global Hawks etc.
3. Defence Trade and Technology Initiative- The DTII that was launched in 2012 aimed at
simplifying technology transfer policies and exploring possibilities of co-development and co-
production to invest the defence relationship with strategic value.
4. Policy Dialogue-
1) Both nations have decided to establish a new dialogue between the defence and foreign
ministers of the two countries.
2) The new dialogue format between the two countries is likely to be ―2 by 2‖, which is similar to
the India-Japan 2+2 dialogue format between foreign and defence secretaries of the two
countries.
5. Military Exercises
1) The two countries' military exercises had grown in scope and complexity.
2) Malabar Exercise- The United States and India, participate in the annual exercise called
Malabar exercises. Japan was added as a permanent member of the Malabar in 2015
3) RIMPAC- Indian Navy ship took part in Rim of the Pacific (RIMPAC) exercise in 2014. The
RIMPAC is the world‘s largest international maritime warfare exercise held biennially.
4) Yudh Abhyas- A joint military training exercise which is one of the largest joint running military
training and defence corporation endeavours between India and USA. It provides an ideal
platform for security personnel of the two countries to share their experiences on counter-
insurgency operations, especially in the mountainous region.
6. India Rapid Reaction Cell- The IRRC in the Pentagon is the first country specific cell of its kind for
simplifying defence collaboration between the two nations.
7. Defence deals-
1. India in recent years has emerged as one of the most important export markets for the U.S.
defence industry, with defence trade volume surpassing $13 billion dollars in the past decade.
Major sophisticated weapon procurements include CH-47 Chinooks, AH¬64 Apaches, C17
Globemasters, and C¬130J Super Hercules Aircraft etc.
2. Tata Group and American aerospace giant Lockheed Martin signed a deal in June 2017, to
jointly produce the combat-proven F-16 fighter jets in India, boosting Prime Minister Narendra
Modi's 'Make in India' plan.
3. The US has cleared the sale of 22 unmanned Guardian drones to India, with the deal, estimated
to be worth $2-3 billion, being termed as a game changer as it operationalises the status of
India as a ‗major defence partner.‘

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4. The understanding to share aircraft carrier catapult launch technology and design capabilities
will enable the two navies to work synergistically in the Indo Pacific.
5. In 2015, the two sides have announced six ―path finder‖ projects, including co-developing jet
engine technology and aircraft carrier systems and co-producing Raven unmanned aerial
vehicles and specialized intelligence gathering equipment for military transport aircraft, mobile
electric hybrid power sources, helmet mounted digital displays for aircraft and helicopter pilots,
high energy lasers, and chemical and biological warfare protection gear for soldiers.
SECURITY COOPERATION
1. Counter-terrorism
1. Both nations have agreed and stressed that terrorism is a global scourge that must be fought
and terrorist safe havens rooted out in every part of the world. Cooperation in counter-terrorism
has seen considerable progress with intelligence sharing, information exchange, operational
cooperation, counter-terrorism technology and equipment.
2. India-US Counter-Terrorism Cooperation Initiative was signed in 2010 and A Homeland
Security Dialogue was announced during President Obama's visit to India in November 2010
to further deepen operational cooperation, counter-terrorism technology transfers and capacity
building.
3. India and USA have affirmed their support for a U.N. Comprehensive Convention on
International Terrorism that will advance and strengthen the framework for global cooperation.
4. India appreciated the United States designation of the Hizb-ul-Mujahideen leader Syed
Salahuddin as a Specially Designated Global Terrorist as evidence of the commitment of the
United States to end terror in all its forms.
5. An arrangement between IB, India and Terrorist screening centre of FBI was signed for access
to terrorism screening information through designated contact points, subject to domestic laws
and regulations. With the signing of the key pact, India has formally entered into the US
Homeland Security Presidential Directive-6 (HSPD-6), which will enable it to access
‗unclassified biographic information of known and suspected terrorists‘ maintained by the US on
a reciprocal basis.
ECONOMIC RELATIONS
Trade
1. Trade relations between India and USA have grown substantially. India-US trade stood at$45 billion
in 2006. It jumped to $114 billion in 2016. As per the US India Strategic and Partnership Forum
trade between India and the US is estimated to have reached $140 billion in 2017.
2. US exports in 2016 were $42.0 billion and imports were $72.8 billion. The resultant trade deficit with
India was $30.8 billion in 2016.
3. US is the second largest trading partner of India. The two sides have set a target to increase
bilateral trade in goods & services to $500 billion.
4. Trade with further increase as India has started import of crude oil and LNG from USA.
Investments
1. The two-way investment between the US and India in 2016 was nearly $40 billion.
2. During Prime Minister Modi's visit in September 2014, it was decided to establish an India-US
Investment initiative, with a special focus on facilitating FDI, portfolio investment, capital market
development and financing of infrastructure and an US-India Infrastructure Collaboration

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Platform to deploy cutting edge U.S technologies to meet India‘s infrastructure needs. Both these
dialogues have held meetings in 2016.
3. Investment in Smart Cities Project- US firms will be lead partners in developing Allahabad, Ajmer
and Visakhapatnam as Smart Cities.
Challenges in Economic Relations
However, there are several other issues to be sorted out-
1. Lack of ease of doing business- USA government wants India to address the concerns of the US
business community regarding, tariff and non-tariff barriers, subsidies, localisation policies,
restrictions on investment, and intellectual property concerns that limit market access and impede
US exporters and businesses from entering the Indian market.
2. WTO Disputes- India's solar programme (JNNSM) was challenged by USA in WTO. The U.S. won
the case last year, when WTO appeals judges ruled that India had broken the trade rules by
requiring solar power developers to use Indian-made cells and modules. USA has now complained
to WTO DSB that India has failed to comply with the ruling which could lead to US imposing trade
sanctions on India.
3. 'America First' vs 'Make in India’-
1) India has been trying to boost India's manufacturing industry, under a program called "Make in
India."The government has been encouraging foreign companies to set up production locations
in the country.
2) Apple recently began assembling iPhones in India, while defence manufacturing giant Lockheed
Martin (LMT) will make and export F-16 fighter jets from the country if it wins a big order from
the Indian Air Force. Ford said in November that it will be the first automaker to import vehicles
to the U.S. from India starting in 2018.
3) The potential for a clash between "Make in India" and Trump's pledge to put "America First" by
bringing jobs and manufacturing back to the U.S. is obvious.
4. IPR ISSUE
Intellectual property (IP) protection remains a sticking point in the budding relation between Washington
and Delhi as the US favours strong protection for its corporate interests.
Special 301 Report:
1. Special 301 Report is a report published by USA pursuant to Section 301 of the Trade Act of 1974.
It an official admonishment of countries whose IPR framework is seen as an impediment to
international trade for US corporations.
2. Basically, it is an annual catalogue of countries that do not meet US IPR norms issued by the
United States Trade Representative (USTR).
3. In the 2018 edition of the report it again identifies India in the Priority Watch List.
The major issues flagged by the report in respect of Indian IP laws are-
1. Laws and policies in India make it difficult for innovators to receive and maintain patents,
particularly for pharmaceuticals-
1) Concerns over the provision of Section 3(d) of the Patent Act which relates to non-
patentability of inventions involving chemical forms that do not show enhancement in the known
efficacy.
2) Issue of Compulsory License by the Controller General of Patent, Designs and Trademarks
under section 84 of the Patents Act.
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2. The enforcement action and policies that are insufficient to curb the problem of IP infringement and
piracy.
3. The copyright policies do not properly incentivize the creation and commercialization of content,
and
4. An outdated and insufficient trade secrets legal framework. India lacks a proper law to protect trade
secrets and relies on common-law or law of contracts for the purpose.
Recent steps by India to strengthen IP protection welcomed by the 301 report-
1. India released its official National IPR policy in 2016 to promote, commercialize and enforce IPR in
a better way.
2. The passage of the Commercial Courts Act 2015, will lead to reduction in delays in IP enforcement
and increase expertise in judicial IP matters.
3. The issuance of Computer-Related Invention Patent Examination Guidelines that eliminated the
―novel hardware‖ requirement.
4. The Cell for IPR Promotion and Management, established under DIPP for the implementation of the
National IPR Policy, has successfully spearheaded efforts to promote IP awareness,
commercialization, and enforcement throughout India.
5. Reduction in time for approving patent and trademark applications.
Criticism of the Report-
The ―Special 301″ process is a unilateral step taken by the US under their Trade Act, 1974 to put
pressure on countries to enhance Intellectual Property Rights (IPR) protection beyond the TRIPS pact.
It is an extra territorial application of the domestic law of a country and is not reasonable under the
overall WTO regime.
India’s stand-
India has a sound legislative, administrative and judicial framework to protect IPRs which meets its
obligations under the Trade Related Intellectual Property Rights (TRIPS) Agreement while making use
of the flexibilities provided in the international regime to address its developmental concerns.
SCIENCE AND TECHNOLOGY COOPERATION
1. The India-U.S. S&T cooperation has been steadily growing under the framework of U.S.-India
Science and Technology Cooperation Agreement signed in October 2005.
2. In 2000, both the governments endowed the India-U.S. Science & Technology Forum (IUSSTF)
to facilitate mutually beneficial bilateral cooperation in science, engineering, and health. Various
projects underway to strengthen the cooperation between the two countries include-
3. Thirty-Meter Telescope Project - The TMT project in Mauna Kea, Hawaii is proposed to study
about early stages of evolution of the Universe. India is a part of the project and has agreed to
spend Rs. 1299.8 crores over the next decade for this project.
4. Laser Interferometer Gravitational Wave Observatory- India will build a LIGO facility and
together with the USA will explore gravitational waves. India‘s first LIGO (Laser Interferometer
Gravitational-Wave Observatory) laboratory will be set up in Aundh in Hingoli district of
Maharashtra.
5. Ending Preventable Child and Maternal Deaths- USAID announced plans to partner with a
leading Indian private sector management firm, bringing together the public and private sectors to
scale up effective solutions to end preventable child and maternal deaths in India by 2035.

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6. Safe Drinking Water- USAID is prioritizing public-private alliances in densely populated urban
areas for targeted investments in water and sanitation. The partnerships will work to reduce
preventable morbidity and mortality among poor urban children and women through innovative
solutions.\
7. USAID will serve as knowledge partner for the Urban India Water, Sanitation and Hygiene (WASH)
alliance with to help leverage business and civil society (Gates Foundation) to facilitate access to
clean water, hygiene and sanitation in 500 Indian cities.
8. Health Research- The U.S. National Institutes of Health (NIH) has developed a robust relationship
with India‘s medical research community in the biomedical and behavioural health sciences. For
example The Rotavac vaccine for rotavirus has been developed in collaboration with Indian and
American institutes in PPP mode.
SPACE COOPERATION
1. Partnership in 20th century-
1) In the 1970s, ISRO and NASA conducted the Satellite Instructional Television Experiment
(SITE). The purpose was to beam television programs to more than 2,400 villages across India,
to show programs on health, agriculture, development, and children‘s programs. The program
impacted the lives of millions of rural people and provides just one example of how U.S.-India
space cooperation brings tangible benefits to our people.
2) The SITE program led India to develop its own state-of-the-art multipurpose communications
satellite in the 1980s – the Indian National Satellite, or INSAT. The first four INSAT satellites
were built by U.S. industry.
2. This early relationship has developed in to a robust partnership exemplified by scientific exchanges
and joint projects like-
1) Mars Exploration- NASA‘s MAVEN and ISRO MOM (Mars Orbiter Mission) reached MARS
almost at same time. So both countries have established a Mars Working Group to investigate
further cooperation for Mars exploration. NASA‘s Jet Propulsion Laboratory provided navigation
and communication support to the MOM.
2) NASA-ISRO synthetic aperture radar project (NISAR)- The satellite will use advanced radar
imaging to provide an unprecedented and detailed view of Earth. The joint mission will improve
scientists‘ understanding of climate change and natural hazards by measuring changes on the
Earth‘s surface, such as changes in ice sheets, land vegetation, and land motion.
3) Satellite launches- In September 2015, for the first time India launched four U.S. satellites. In
2017 when PSLV C-37 launched 104 satellites in a single flight 96 of them were American.
4) Space Situational Awareness (SSA) programme- A bilateral mechanism for sharing
information for tracking movements of satellites, avoiding collisions and identifying potential
threats to space and ground assets has been set up by the two countries.
ENERGY COOPERATION
Energy has emerged as a major area of cooperation between the two countries.
1. The U.S.-India Energy Dialogue- It was launched in May 2005 to promote trade and investment in
the energy sector, and held its last meeting in September 2015 in Washington DC.
2. Investment by Indian companies like Reliance, Essar and GAIL in the U.S. natural gas market is
ushering in a new era of India-U.S. energy partnership.
3. Crude Oil- USA had stopped oil exports to India in 1975 but the ban was lifted in 2015. As per
experts Indian oil buys could increase bilateral trade by almost $2 billion. The important fact about

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US crude imports is that even after the transport costs, the oil is priced competitively compared to
Gulf crude, which India has traditionally being buying.
4. LNG Trade- USA agreed to provide liquefied natural gas (LNG) to India. State-owned gas utility
GAIL India has contracted to purchase 3.5 million tonnes per annum of liquefied natural gas (LNG)
from Cheniere Energy's Sabine Pass liquefaction facility in Louisiana. In May 2018 received its first
LNG cargo from the US under a 20-year Sale Purchase Agreement (SPA).
5. Gas Hydrates- An MOU was signed between the Ministry of Petroleum and Natural Gas and the
Department of Energy of the US for cooperation in Gas Hydrates in 2016. It aims to increase the
understanding of the geologic occurrence, distribution, and production of natural gas hydrates
along the continental margin of India and in the US.
6. Renewable Energy-
1) As a priority initiative under the PACE (Partnership to Advance Clean Energy), the U.S.
Department of Energy (DOE) and the Government of India have established the Joint Clean
Energy Research and Development Centre (JCERDC) designed to promote clean energy
innovations by teams of scientists from India and the United States, with a total joint committed
funding from both Governments of US$ 50 million.
2) India and US launched new joint initiative of 20 million USD US-India Clean Energy Finance
(USICEF) Initiative which would help in unlocking OPIC (The Overseas Private Investment
Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American
businesses invest in emerging markets.) financing and mobilize public and private capital to
expand access to distributed clean energy projects.
3) The two nations also agreed on a $40-million US-India Catalytic Solar Finance Programme,
which would be equally supported by the US and India. It would provide much needed liquidity
to smaller scale renewable energy investments, particularly in poorer, rural villages that are not
connected to the grid, and could mobilise up to $1 billion of projects.
4) In November 2014, an MoU between US EXIM Bank and Indian Renewable Energy
Development Agency (IREDA) was concluded to provide US$ 1 billion in financing for India‘s
transition to a low-carbon economy
7. NUCLEAR ENERGY-
1) The bilateral civil nuclear cooperation agreement based on joint statement by Indian PM and US
President in July 2005,was signed in October 2008. There emerged many issues including the
Indian 2010 nuclear liability law which imposed suppliers liability case of any nuclear accident.
2) Therefore, a Contact Group was set up in 2014 for advancing the full and timely implementation
of the deal by resolving the pending issues.
3) The group reached agreement on the compatibility of India's nuclear liability law with relevant
international conventions and creation of an insurance pool drawing experience of best
practices to take care of nuclear liability risk.
4) Two US companies Westinghouse and GE Hitachi wished to set up nuclear reactors in Andhra
Pradesh and Gujarat.
5) In 2016 a deal was concluded under which Westinghouse was to build six AP1000 reactors in
Andhra Pradesh. But it went in limbo after Westinghouse in 2017 filed for bankruptcy following
an estimated USD 13 billion of cost overruns at two US projects.
6) But in March 2018 the US Energy Secretary Rick Perry said that Westinghouse Electric Co is
emerging out of bankruptcy and is now capable of delivering the planned six nuclear reactors to
India on time.
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Paris climate accord
1. US ratified Paris climate deal in September 2016 but President Trump announced US pull out from
Paris Climate Agreement in June 2017.
2. According to him, the Paris agreement would lead to a redistribution of American wealth to other
countries and transfer of American jobs abroad.
3. According to President Trump, under the agreement, China will be able to increase these emissions
by a staggering number of years 13 years and India makes its participation contingent on receiving
billions and billions and billions of dollars in foreign aid from developed countries while US stood to
gain nothing.
4. America has also stopped contributing to the Green Climate Fund set up under the Paris agreement
to support developing countries meet their commitment.
5. India however remains committed to the Paris agreement to tackle climate change despite stand
taken by other countries. The Prime Minister remarked that it would be a "crime" to spoil the
environment for future generations and that there is an underlined the need to protect biodiversity.
CULTURAL AND PEOPLE TO PEOPLE
Diaspora
1. The 3.5-million-plus strong Indian American community is an important ethnic group in the U.S.,
accounting for about 1% of the total population in the country.
2. Indian American community includes a large number of professionals, business entrepreneurs and
educationalists with increasing influence in the society. With two Indian Americans occupying high
level posts of Governor and several representatives of the people, the Indian Diaspora has
assimilated into their adopted country and is acting as a catalyst to forge closer and stronger ties
between India and USA.
3. A Pew Research study released in 2013 disclosed that the median annual household income for
Indian Americans was $88,000 compared to $66,000 for all Asians and $49,800 for the US
population.
4. The Indian diaspora community is noted for being very well organised and having a deep and
multifaceted engagement with the homeland. They are also inclined to stay connected with India
through investments, philanthropy and personal involvement. The Indian Diaspora can bring broad
economic benefits to India.
5. The Indian diaspora has established countless highly organised, well-funded, and professionally
managed groups. These organisations address a broad range of issues and take on many different
forms, including philanthropic projects to improve health and education in India, advocacy
organisations, business and professional networks, media outlets, and societies for the promotion
of Indian culture, language and religion.
6. The diaspora also helps in shaping the political and strategic relations between the two countries.
HIB VISA ISSUE
1. The US H-1B visa is a non-immigrant visa that allows US companies to employ graduate level
workers in specialty occupations that require theoretical or technical expertise in specialized fields
for a certain period of time.
7. US issues 85,000 H1-B visas every year, and India accounts for about 70% of the visas awarded
annually.

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The new US President has now called for the review of the H1B visas to bring back jobs in America.
The ‗Buy American Hire American‘ policy is in line with this. A new bill has also been introduced in the
US to tighten the H1B visa applicants.
The Protect and Grow American Jobs Act (HR 170)
1. The judicial committee of US House of Representatives has approved ‗The Protect and Grow
American Jobs Act‘ (HR 170). It is now awaiting a nod from the US Senate.
2. The Bill encourages companies to recruit American workers. It explicitly prohibits replacement of
American workers by H1-B or L-1 visa holders.
3. It proposes to increase the minimum wage requirement to $90,000 per annum from the current
$60,000.
4. The bill also mandates employers to prove they have attempted to hire American workers for the
position and sets out stronger actions for the Labour Department to a keep strict watch over H-1B
dependent employers, defined as companies whose workforces are comprised of 15 percent or
more of H-1B workers.
5. Currently, firms need not go through extensive paperwork if the potential H1-B employee has an
equivalent of a Master‘s degree or higher and he or she is paid at least $60,000 annually. The Bill
aims to do away with the Master‘s degree exemption (as ―they are easily obtained by foreign
workers‖).
How does it affect India-
1. The bill if passed would affect the Indian IT companies who are dependent on the jobs offered by
the H1B visas.
2. But it will mostly impact Indian IT services companies heavily dependent on H-1B visas. Techies
looking for jobs in high-tech firms in the US will still have doors open for them.
3. The effects of the Act have already been felt in the Indian markets, with share prices of major tech
companies plummeting. Infosys, TCS, Wipro, Tech Mahindra and HCL were among those badly hit.
4. The Act could also lead to a decrease in interest in students flocking to American universities.
The Indian IT industry believes that this Bill does not address the root cause of the problem – shortage
of STEM skills (or those in the areas of Science, Technology, Engineering and Math) in the U.S.
The US currently has a shortage of about two million STEM (Science, Technology, Engineering and
Mathematics) workers, while India has an excess of those skills. This means that despite the higher
scrutiny on H1-B visas, India will continue to be the biggest source of STEM-related jobs in the US.

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