India's Strategic Evolution: Navigating Alliances Between US and China

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ICARO Media Group
Politics
24/10/2024 20h48

### India's Strategic Pivot: From US Alliance to Renewed Engagement with China

In October 2020, India and the United States signed the Basic Exchange and Cooperation Agreement for Geospatial Intelligence (BECA), marking India's fourth foundational agreement with the US. This move came as Prime Minister Narendra Modi seemed optimistic about leveraging his close ties with then-US President Donald Trump to secure better access to US markets and technology. Modi even showcased his support for Trump's re-election during the "Howdy, Modi!" event in Houston, enthusiastically chanting, "Abki Baar, Trump Sarkar" (Next term, Trump's government).

Despite high hopes for a shift of American companies from China to India as well as increased US investments, the anticipated economic influx did not materialize. Companies like Ford, General Motors, and Harley-Davidson exited the Indian market instead. Efforts to assemble Apple iPhones in India also faced significant hurdles such as a high rejection rate and concerns over E. coli bacteria, resulting in lower-than-expected productivity levels compared to China.

On the geopolitical stage, India's alignment with the US came with its own setbacks. Traditionally viewing South Asia and the Indian Ocean as its sphere of influence, India found itself losing ground in the region. Evidence of this shift became apparent when the US conducted a Freedom of Navigation Operation (FONOPS) in the Indian Ocean in April 2021, eliciting a strong backlash from Indian media and academia. Moreover, the US has been accused of stoking anti-India sentiment in countries like Sri Lanka, Nepal, and the Maldives, undermining India's regional influence.

Internally, the Modi administration gradually realized that US expectations required India to relinquish its "strategic autonomy," fundamentally altering its foreign policy dynamics. While trade and economic exchanges with China continued to grow despite rhetorical restrictions, the US pressure on India to break ties with China and Russia did not align with India's national interests. India still relies heavily on Russia for its arms imports and benefits from purchasing cheap Russian oil.

Recent tensions have seen both the US and Canada pressuring India to distance itself from China and withdraw from international alliances like BRICS. However, Modi's allies now acknowledge the critical role China plays in India's economic landscape. The understanding that US trade policies favoring domestic manufacturing limit India's benefits from the US has led Modi to reconsider India's foreign policy direction.

Reflecting on past experiences, the Indian administration under Dr. Manmohan Singh showed similar resilience against US pressures. Singh's government maintained a balanced approach by fostering economic development through partnerships with China while managing border disputes diplomatically. Modi's attempt at a steadfast US partnership, in contrast, has strained India's resources and diverted attention from critical national priorities.

As Modi embarks on his third term, there is a significant shift on the horizon — moving away from a US-focused strategy to seek cooperative relations with China once again. The lessons learned over the past decade have underscored the complexities and consequences of international alliances, spurring Modi to rethink and reshape India's global engagement strategy.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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