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Summary:
The end of the Cold War freed India-U.S. relations from the constraints of global bipolarity, but interactions continued for a decade to be affected by the burden of history, most notably the longstanding India-Pakistan rivalry and nuclear weapons proliferation in the region. Recent years, however, have witnessed a sea change in bilateral relations, with more positive interactions becoming the norm. India's swift offer of full support for U.S.-led counterterrorism operations after September 2001 was widely viewed as reflective of such change. Today, President Bush calls India a "natural partner" of the United States and his Administration seeks to assist India's rise as a major power in the new century. In July 2005, President Bush and Indian Prime Minister Singh issued a Joint Statement resolving to establish a U.S.-India "global partnership" on a wide range of issues. In recent years, the United States and India have engaged in numerous and unprecedented joint military exercises. Discussions of possible sales to India of major U.S.-built weapons systems are ongoing. Plans to expand hightechnology trade have become key bilateral issues in recent years. In the July Joint Statement, the Bush Administration dubbed India "a responsible state with advanced nuclear technology" and seeks to achieve "full civilian nuclear energy cooperation with India." Such proposed cooperation is controversial and would require changes in both U.S. law and international guidelines. The United States seeks to curtail the proliferation of nuclear weapons and ballistic missiles in South Asia. Both India and Pakistan have resisted external pressure to sign the major nonproliferation treaties. In May 1998, the two countries conducted nuclear tests that e v o k e d international condemnation. Proliferation-related restrictions on U.S. aid were triggered, then later lifted through congressional-executive cooperation from 1998 to 2000. Remaining sanctions on India (and Pakistan) were removed in October 2001. Continuing U.S. interest in South Asia focuses on ongoing tensions between India and Pakistan, a problem rooted in unfinished business from the 1947 Partition and competing claims to the Kashmir region. The United States strongly encourages maintenance of a cease-fire in Kashmir and continued, substantive dialogue between India and Pakistan. U.S. concerns about human rights issues related to regional dissidence and separatism in several Indian states continue. Strife in these areas has killed tens of thousands of civilians, militants, and security forces over the past two decades. Communal tensions and religious freedom have been another matter of concern. Many in Congress, along with the State Department and international human rights groups, have criticized India for perceived abuses in these and other areas. India is in the midst of major and rapid economic expansion. Many U.S. business interests view India as a lucrative market and candidate for foreign investment. The United States supports India's efforts to transform its once quasi-socialist economy through fiscal reform and market opening. Since 1991, India has taken steps in this direction, with coalition governments keeping the country on a general path of reform. However, there is U.S. concern that movement remains slow and inconsistent. See also CRS Report RL33072, U.S.India Bilateral Agreements; CRS Report RL32259, Terrorism in South Asia; and CRS Report RS21502, India-U.S. Economic Relations .
