IB93097
India-U.S. Relations
September 03, 2002
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Summary
Although the end of the Cold War freed U.S.-India relations from the constraints of a bipolar world, bilateral relations continued for a decade to be affected by the burden of history, most notably the longstanding India-Pakistan regional rivalry. Recent years, however, have brought a sea change in U.S.India relations, which was reflected in India's swift offer of full support for the U.S.-led war on terrorism following the September 11, 2001, terrorist attack on New York and Washington. The continuing U.S. concern in South Asia, however, is the reduction of tensions between India and Pakistan, which center on their competing claims to the former princely state of Kashmir, and the prevention of nuclear and ballistic missile proliferation. India and Pakistan have so far ignored U.S. and international pressure to sign the Nuclear Nonproliferation Treaty or the Comprehensive Test Ban Treaty (CTBT). On May 11 and 13, 1998, India conducted a total of five unannounced nuclear tests, setting off worldwide condemnation. Following India's lead, on May 28 and 30, Pakistan reported conducting six nuclear tests. As a result of the tests, President Clinton imposed wide-ranging sanctions on both countries, mandated by the Arms Export Control Act. Many of these sanctions gradually were lifted through Congress-Executive branch cooperation in 1998-2000. The remaining nuclear sanctions on India and Pakistan were removed on September 22, 2001. Congress also has been concerned with human rights issues related to regional dissidence and separatist movements in Kashmir, Punjab, and India's Northeast region. Strife in these areas over the past decade has resulted in the deaths of thousands of civilians, militants, and security forces. International human rights groups, as well as Congress and the U.S. State Department, have criticized India for alleged human rights abuses by its security forces in efforts to suppress these movements. The United States has been highly supportive of India's efforts to transform its formerly quasi-socialist economy through fiscal reform and market opening, beginning under the Narasimha Rao government in 1991, when India took steps to reduce inflation and the budget deficit, privatize state-owned industries, reduce tariffs and industrial licensing controls, and institute incentives to attract foreign trade and investment. Successive coalition governments kept India generally on the path of economic reform and market opening. Rapidly expanding U.S.-India economic relations were a major focus of President Clinton's March 2000 fiveday visit to India. The Bharatiya Janata Party (BJP) coalition government led by Prime Minister Atal Behari Vajpayee, which came to power following the March 1998 parliamentary elections, supported a modest pace of economic reform. In April 1999, the BJP government resigned following the loss of a confidence vote, 270-269. In October 1999, the BJP government regained power following national elections. A BJP-led multiparty alliance won about 300 of 545 parliamentary seats, prompting analysts to forecast a period of more stable government. In November 2001, Vajpayee met with President Bush in Washington to discuss the outlines of expanding U.S.-India cooperation.
