India-US Relations: From Nuclear Deal to Critical Technology Partnership
The India-US strategic partnership has deepened across defence, technology, trade, and people-to-people ties over the past two decades, driven by shared concerns about China's rise and converging geopolitical interests.
Key Takeaways
The India-US strategic partnership has deepened across defence, technology, trade, and people-to-people ties over the past two decades, driven by shared concerns about China's rise and converging geopolitical interests.
- India-US bilateral trade crossed $200 billion in 2025, making the US India's largest trading partner
- Four foundational defence agreements signed since 2016 enable intelligence sharing and military interoperability
- The Initiative on Critical and Emerging Technologies (iCET) launched in 2023 covers AI, semiconductors, space, and quantum computing
- Indian diaspora in the US has grown to 4.5 million, the highest-skilled immigrant group by income
- Persistent tariff disputes and H1B visa restrictions remain key friction points
Evidence
The US is India's most reliable defence partner, supplying cutting-edge military technology.
Verified88%- ▶The US has supplied C-17, C-130, P-8I, Apache, Chinook, and MQ-9B drones. Total defence deals exceed $25 billion since 2016.
India-US trade relations are free of barriers and disputes.
Moderate75%- ▶India imposed retaliatory tariffs on $1.4 billion of US goods in 2019. US concerns remain on India's data localization, digital services tax, and medical device price caps. WTO disputes on solar cells and shrimp continue.
The H4 EAD rule allows Indian spouses to work freely in the US.
Moderate65%- ▶The H4 EAD rule (permitting H1B spouses to work) is under legal challenge and has been subject to proposed revocation under multiple administrations. Its future remains uncertain.
Key Numbers
Timeline
India-US Bilateral Trade ($ Billion)
Drag to select a range to zoom in
Frequently Asked Questions
Sources
Research
Related Stories
The Great Supply Chain Shift: Can India Capture the China+1 Opportunity?
As global companies diversify away from China, India has attracted $85 billion in FDI since 2023 — but infrastructure gaps and policy inconsistency threaten to squander the moment.
India's ₹1.2 Lakh Crore Semiconductor Push: Can the Dream Take Silicon?
India's expanded semiconductor PLI scheme promises to cover the full value chain, but the Vedanta-Foxconn JV collapse and a growing talent gap raise questions about execution readiness.
Related Entities
Organization
Quadrilateral Security Dialogue
The Quad (Quadrilateral Security Dialogue) is a strategic forum comprising India, Australia, Japan, and the United States. Revived in 2017, the Quad focuses on a free and open Indo-Pacific, maritime security, critical and emerging technology cooperation, climate action, and infrastructure investment through the Quad Infrastructure Fellowship.
G20
India is a founding member of the G20 (1999) and held a landmark Presidency in 2023, hosting the New Delhi Leaders' Summit. Under India's presidency, the G20 focused on climate finance, digital public infrastructure, women-led development, and Global South representation. India's push for the African Union's permanent G20 membership was a key diplomatic achievement.