Historically, however, U.S.-India trade relations have long been overshadowed by the two countries' political and security differences. During the Cold War, relations were inhibited by India's pursuit of nonalignment and by U.S. regional security goals that led it to pursue close relations with Pakistan. Neither side perceived a benefit in developing closer economic relations; during periods of political or security tension, programs to aid commerce were either halted or delayed (Johnson, 3).
America and India share the distinction of being the world's largest "democracies." Yet relations between the two countries have been unsteady and will need executive attention if they are to improve. A major stumbling block to relations in recent years has been India's testing of nuclear weapons and its missile development program, both of which threaten regional stability.
As part of a program to accelerate economic modernization, India is seeking U.S. assistance to develop its commercial satellite and space launch capabilities. Although helping India to improve its economy and increasing opportunities for U.S. businesses in India are good foreign policy objectives, history has shown that there are limits to how far the United States should go in transferring sensitive technology that could be used in weapons development or ballistic missile programs. Washington should not be swayed, either by rhetoric about India's democracy and its new nuclear power status or by suggestions of increased trade, into placing India's interests before U.S. national security concerns (Johnson, 3).
Today, less than 10 percent of India's imports come from the United States.5 Over 20 percent of government revenues are derived from state-owned enterprises,6 such as the steel, automobile, and aviation industries, with Soviet-like centrally planned and controlled production lines that are not attractive to U.S. investors. The manufacturing processes on which they rely for the most part are obsolete and poorly managed and use labor inefficiently; they would be expensive to upgrade..........................
Get Professionally written Essays that are:
• Written According to your Exact Requirements
• 100% Original and Non-Plagiarized
• Written by Expert
UK Writers
• Delivered to you before your deadline
Amazingly Low Prices - £9.95/page
