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DECEMBER-2011 ISSUE

  Ebb and Tide
  Has the US-Indian strategic partnership bombed?
 
The expectantly awaited US-Indian strategic partnership is no more. That, at least, is the view in the commentariat and among some on Capitol Hill and within the Obama administration. Even among those who do not hold this extreme position, there is an uneasy sense that the bilateral partnership is not going forward, only sideways. And India’s recent decision in the medium multi-role combat aircraft (MMRCA) competition and its troubled nuclear liability legislation (NLL) remain the poster children that confirm the worst fears of even India’s friends that the relationship is not yielding the rewards initially imagined.

 
 
To be sure, both outcomes can be explained away. The American contenders in the MMRCA race were always long shots, and they stood their best chance only if the government of India focused on value rather than pursuing the finest flying machines that money could buy. When the Indian Air Force settled for the latter — an arguably reasonable decision — the American entrants lost out. Similarly, the NLL is undoubtedly inconsistent with the international Convention on Supplementary Compensation for Nuclear Damage, and it undermines the ability of the American nuclear industry to do business in India. But it does not discriminate against the United States singularly. Rather, it impairs uniformly the ability of all foreign and domestic private suppliers to participate in India’s planned nuclear renaissance.
 
 
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