Post-liberalization era Under
Bill Clinton (President 1993–2001) and
P. V. Narasimha Rao (Prime Minister 1991–1996) both sides mishandled relations, according to Arthur G. Rubinoff. Clinton simultaneously pressured India to liberalize its economy while criticizing New Delhi on human rights and nuclear issues. In the face of criticism from Washington and opposition at home, Indian leaders lost their enthusiasm for rapprochement and reverted to formalistic protocol over substantive diplomacy. The Brown Amendment that restored American aid to Pakistan in 1995 was an irritant. In returning to a Cold War style rhetoric, Indian parliamentarians and American congressmen demonstrated their unwillingness to establish a new relationship.
NDA I and II governments (1998–2004) with US President
Bill Clinton in
New Delhi in March 2000 with US President
George W. Bush in
New York City in September 2003 Soon after
Atal Bihari Vajpayee became Indian prime minister, he authorized
nuclear weapons testing at
Pokhran. The United States strongly condemned this testing, promised sanctions, and voted in favor of a
United Nations Security Council resolution condemning the tests. President Clinton imposed economic sanctions on India, including cutting off all military and economic aid; freezing loans by American banks to state-owned Indian companies; prohibiting loans to the Indian government for all except food purchases; prohibiting American aerospace technology and uranium exports to India; and requiring the US to oppose all loan requests by India to international lending agencies. However, these sanctions proved ineffective—India was experiencing strong economic growth, and its trade with the US only constituted a small portion of its
GDP. Only
Japan joined the US in imposing direct sanctions, while most other nations continued to trade with India. The sanctions were soon lifted. Afterward, the
Clinton administration and Prime Minister Vajpayee exchanged representatives to help rebuild relations. In March 2000, Clinton visited India, undertaking bilateral and economic discussions with Vajpayee. This would mark the first US presidential trip to India since 1978. During the visit, the
Indo-US Science & Technology Forum was established. Over the course of improved diplomatic relations with the
Bush administration, India agreed to allow close international monitoring of its nuclear weapons development, although it refused to give up its current nuclear arsenal. In 2004, the US decided to grant
major non-NATO ally (MNNA) status to Pakistan. The US extended the MNNA strategic working relationship to India but the offer was turned down. After the
September 11 attacks against the US in 2001, President
George W. Bush collaborated closely with India in controlling and policing the strategically critical
Indian Ocean sea lanes from the
Suez Canal to
Singapore.
George W. Bush commented: "India is a great example of democracy. It is very devout, has diverse religious heads, but everyone is comfortable about their religion. The world needs India". Journalist
Fareed Zakaria, in his book
The Post-American World, described Bush as "being the most pro-Indian president in American history." According to
Rejaul Karim Laskar, a scholar of Indian foreign policy and ideologue of the
Indian National Congress, the ruling
UPA coalition saw a "transformation in bilateral ties with the US", as a result of which the relations now covers "a wide range of issues, including high technology, space, education, agriculture, trade, clean energy, counter- terrorism, etc". After the
December 2004 tsunami, the US and Indian navies cooperated in search and rescue operations and in the reconstruction of affected areas. Since 2004, Washington and New Delhi pursued a "strategic partnership" based on shared values and generally convergent geopolitical interests. Numerous economic, security, and global initiatives, including plans for civilian nuclear cooperation, are underway. First launched in 2005, cooperation on nuclear weapons reversed three decades of American non-proliferation policy. Also in 2005, United States and India signed a ten-year defense framework agreement, with the goal of expanding bilateral security cooperation. The two countries engaged in numerous and unprecedented combined military exercises, and major US arms sales to India were concluded. After
Hurricane Katrina, India donated $5 million to the
American Red Cross and sent two planeloads of relief supplies and materials to help. The value of all bilateral trade tripled from 2004 to 2008 and continued to grow, while two-way investment also increased. In November 2010, President
Barack Obama visited India and addressed a joint session of the
Indian Parliament, where he backed
India's bid for a permanent seat on the
United Nations Security Council.
Strategic and military determinants In March 2009, the
Obama administration cleared the US$2.1 billion sale of eight
P-8 Poseidons to India. This deal, and the $5 billion agreement to provide
Boeing C-17 military transport aircraft and
General Electric F414 engines announced during Obama's November 2010 visit, made the US one of the top three military suppliers to India (after Israel and Russia).
US spying incidents In July and November 2013, India demanded that the US respond to allegations that the Indian UN mission in
New York City and the Indian Embassy in
Washington, D.C. had been targeted for spying. A 2010 document leaked by
Edward Snowden and published by
The Washington Post revealed that US intelligence agencies had been authorized to spy on
Narendra Modi (who was then the
Chief Minister of the Indian state of Gujarat).
WikiLeaks revelations that Western intelligence agencies used foreign aid workers and staff at non-governmental organizations as
non-official cover prompted India to increase monitoring of
satellite phones and movement of personnel working for humanitarian relief organizations and development aid agencies in the vicinity of sensitive locations.
Foreign policy issues during the early 2010s , US
Secretary of State Hillary Clinton, and the Indian delegation at the US-India Strategic Dialogue reception at the US
Department of State in
Washington, D.C. in June 2010 According to some analysts, India–US relations were strained over the approach of the
Obama administration to Pakistan and the handling of the
Taliban insurgency in Afghanistan. India's
National Security Adviser M. K. Narayanan criticized the Obama administration for linking the
Kashmir dispute to the instability in Pakistan and Afghanistan, and said that by doing so, President Obama was "barking up the wrong tree."
Foreign Policy in February 2009 also criticized Obama's approach to
South Asia, saying that "India can be a part of the solution rather than part of the problem" in South Asia. It suggested that India take a more proactive role in rebuilding
Afghanistan, irrespective of the attitude of the Obama administration.
Bloomberg reported that, since the
2008 Mumbai attacks, the public mood in India has been to pressure Pakistan more aggressively to take actions against the culprits behind the terrorist attack, and predicted that this might be reflected in the
Indian general elections in May 2009. Consequently, the Obama administration may have found itself at odds with India's rigid stance against terrorism. In the early 2010s, India and US governments have differed on a variety of regional issues ranging from America's
military relations with Pakistan and India's
military relations with Russia to foreign policy disagreements relating to Iran, Sri Lanka, Maldives, Myanmar and Bangladesh. India criticized the Obama administration's decision to limit
H-1B (temporary) visas, and India's then External Affairs Minister
Pranab Mukherjee (later, the
president of India until 2017) said that India would oppose US "
protectionism" at various international forums. India's Commerce Minister
Kamal Nath said that India may move against Obama's outsourcing policies at the
World Trade Organization. In May 2009, Obama reiterated his anti-outsourcing views and criticized the current US tax policy "that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York." However, during the US India Business Council meeting in June 2009, US
Secretary of State Hillary Clinton advocated for stronger economic ties between India and the United States. In June 2010, the United States and India formally re-engaged the US-India Strategic Dialogue initiated under President Bush when a large delegation of high-ranking Indian officials, led by External Affairs Minister
S. M. Krishna, visited
Washington, D.C. As leader of the US delegation, Secretary of State Clinton lauded India as "an indispensable partner and a trusted friend". President Obama appeared briefly at a
United States Department of State reception to declare his firm belief that America's relationship with India "will be one of the defining partnerships of the 21st century." The Strategic Dialogue produced a joint statement in which the two countries pledged to "deepen people-to-people, business-to-business, and government-to-government linkages... for the mutual benefit of both countries and for the promotion of global peace, stability, economic growth and prosperity." It outlined extensive bilateral initiatives in ten key areas, covering a wide range of security-related, economic, and societal topics. In November 2010, Obama became the second US president (after
Richard Nixon in 1969) to undertake a visit to India in his first term in office. On November 8, Obama also became the second US president (after Dwight D. Eisenhower in 1959) to ever address a
joint session of the
Parliament of India. In a major policy shift, Obama declared US support for India's
permanent membership on the UN Security Council. He also announced the removal of export control restrictions on several Indian companies, and concluded trade deals worth $10 billion, which are expected to create and/or support 50,000 jobs in the US.
Devyani Khobragade incident In December 2013,
Devyani Khobragade, the Deputy Consul General of
India in New York, was arrested and accused by US federal prosecutors of submitting false work visa documents and paying her housekeeper "far less than the
minimum legal wage." The ensuing incident saw protests from the Indian government and a rift in relations, with outrage expressed that Khobragade was
strip-searched and held in the general inmate population. India demanded an apology from the US over her alleged "humiliation" and called for the charges to be dropped, which the US declined to do. The Indian government retaliated for what it viewed as the mistreatment of its consular official by revoking the ID cards and other privileges of US consular personnel and their families in India and removing security barriers in front of the
US Embassy in New Delhi. Nancy J. Powell, the US ambassador to India, resigned following the incident, which was widely seen by India "as fallout from the imbroglio." Within a year of the incident, US–India relations were warming again, as President Obama visited India in January 2015. India and the US share an extensive and expanding cultural, strategic, military, and economic relationship which is in the phase of implementing
confidence building measures (CBM) to overcome the legacy of trust deficit—brought about by adversarial US foreign policies and multiple instances of technology denial—which have plagued the relationship over several decades. Key developments included the rapid growth of India's economy; closer ties between the Indian and American industries, especially in the Information and communications technology (ICT), engineering and medical sectors; an informal
entente to
manage an increasingly assertive
China; robust cooperation on counter-terrorism; the deterioration of
US-Pakistan relations; easing of export controls over dual-use goods & technologies (99% of licenses applied were, as of 2016, approved); and reversal of long-standing American opposition to India's strategic program. Income creation in the US through knowledge-based employment by Asian Indians has outpaced every other ethnic group according to US Census data. Growing financial and political clout of the affluent
Asian Indian diaspora is noteworthy. Indian American households are the most prosperous in the US, with a median revenue of US$100,000, and are followed by Chinese Americans at US$65,000. The average household revenue in the USA is US$63,000. The political influence of the large Indian-American community is reflected in the largest country-specific caucus in the
United States Congress, while between 2009 and 2010 more than 100,000 Indian students attended American colleges and universities. The 2014 State Department's annual
Trafficking in Persons (TIP) report appeared to classify the Khobragade incident as an example of human trafficking, stating: "An Indian consular officer at the New York consulate was indicted in December 2013 for visa fraud related to her alleged exploitation of an Indian domestic worker." In response, India showed no urgency to allow visits to India by the newly appointed US anti-human trafficking ambassador
Susan P. Coppedge and the US special envoy for LGBT rights Randy Berry. Under
Section 377 of the Indian Penal Code homosexuality was illegal in India. Indian Ambassador to the US, Arun K. Singh reiterated India's commitment to work within an international framework to tackle the problem of trafficking but rejected any "unilateral assessments" by another country saying "We will never accept it" and downplayed the importance of the visits: "When you ask a US official when somebody will be given a visa, they always say 'we will assess when visa is applied for.'... I can do no better than to reiterate the US position." In February 2016, the Obama administration notified the US Congress that it intended to provide Pakistan eight nuclear-capable
F-16 fighters and assorted military goods, including eight
AN/APG-68(V)9 airborne radars and eight ALQ-211(V)9 electronic warfare suites, despite strong reservations from US lawmakers regarding the transfer of any nuclear-capable platforms to Pakistan. The Indian Government summoned the US Ambassador to India to convey its disapproval regarding the sale of F-16 fighter jets to Pakistan.
Modi–Trump relationship (2017–2021) with US President
Donald Trump in the
Oval Office, June 2017 In February 2017, Indian ambassador to the US
Navtej Sarna hosted a reception for the
National Governors Association (NGA), which was attended by the governors of 25 states and senior representatives of three more states. This was the first time such an event had occurred. Explaining the reason for the gathering, Virginia Governor and NGA Chair
Terry McAuliffe stated that "We clearly understand the strategic importance of India, of India–US relations. As we grow our 21st century economy, India has been so instrumental in helping us build our technology, medical professions. We recognise a country that has been such a close strategic ally of the US. That's why we the Governors are here tonight." In October 2018, India inked a historic agreement worth US$5.43 billion with
Russia to procure four
S-400 Triumf surface-to-air missile defence systems—one of the most powerful
missile defence systems in the world—ignoring America's
CAATSA act. The US threatened India with sanctions over India's decision to buy the S-400 missile defense system from Russia. The US also threatened India with sanctions over India's decision to buy
oil from Iran. However, the
Trump administration avoided sanctioning India for the Russian S-400 missile system, while sanctioning
Turkey and China for the same purchases. and Indian Prime Minister
Narendra Modi at
Namaste Trump rally in
Ahmedabad, India on February 24, 2020 's
three wise monkeys to President Trump President
Donald Trump grew closer to India's
BJP government, which shared similar
right-wing views. He repeatedly praised Modi's leadership and avoided any negative criticism of the Indian government's actions on the
citizenship and
Kashmir disputes. The Trump administration was consistent with the
Modi administration in combating "
radical Islamic terrorism", and the US reiterated its support for India's elimination of
terrorist training camp in Pakistan. In early 2020, India provided its agreement for terminating an export embargo on a medicinal drug known as
hydroxychloroquine amidst the combat against the ongoing coronavirus (
COVID-19)
pandemic, after Trump threatened retaliation against India if it did not comply with terminating the export embargo on hydroxychloroquine. On December 21, 2020, President Trump awarded Modi with the
Legion of Merit for elevating India–United States relations. The Legion of Merit was awarded to Modi along with Prime Minister of Australia
Scott Morrison and former Prime Minister of Japan
Shinzo Abe, the "original architects" of the
QUAD.
Modi–Biden relationship (2021–2025) with US President
Joe Biden in the
Oval Office, September 2021 US–India ties began to strain in April 2021 when India faced a massive spike in
COVID-19 infections. The US had invoked the
Defense Production Act of 1950 to
ban the export of raw materials needed to produce vaccines in order to prioritize domestic vaccine production. According to
The Times of India, this also caused an explosion of anti-US sentiment in India, as the US had vaccine reserves and refused to share COVID-19 vaccine patents. This came after a plea by
Adar Poonawalla, CEO of the
Serum Institute of India, to lift the embargo on export of raw materials needed to ramp up production of COVID-19 vaccines, was rejected. India entered negotiations with the US after it declared that it would share 60 million Oxford-AstraZeneca vaccines with the world. In a meeting of the
Quadrilateral Security Dialogue on the implications of the
2022 Russian invasion of Ukraine for the region, President Biden noted India's abstention on a UN resolution condemning the invasion, saying that most global allies were united against Russia. Speaking to the
US Senate Foreign Relations Committee, US diplomat
Donald Lu said the Biden administration was still considering sanctions against India over its S-400 deal with Russia and its abstention at the UN. However, the Biden administration ruled out secondary sanctions against India for its considerable oil imports or defence engagement from Russia. Biden called the ties with India "one of the defining relationships of the 21st century". In a joint statement in 2023, Modi and Biden reiterated the call for concerted action against all groups identified by the United Nations as terrorist organisations, including Al-Qaeda, ISIS (Daesh), Lashkar-e-Tayyiba (LeT), Jaish-e-Mohammad (JeM) and Hizb-ul-Mujhahideen (HuM). They also called out the
Afghan Taliban authorities and Pakistan on the issue of terrorism. The joint statement declared that the two countries have strong ties spanning "seas to stars".
Spying allegations against India In November 2023, it was reported that US authorities prevented a plot to assassinate
Gurpatwant Singh Pannun, a Sikh separatist leader of the
Khalistan movement, within American borders. Pannun had made threats to bomb the
Indian Parliament and
Air India flights, is now facing charges related to terrorist activities by India's NIA. United States federal prosecutors filed charges against Nikhil Gupta, an Indian national, alleging his involvement in a conspiracy with an Indian government official to carry out the assassination of Pannun. India voiced apprehension over the connection of one of its government officials to the plot, distancing itself from the incident and saying it contradicted government policy. In December 2023, it was reported that
President Joe Biden cancelled plans to attend India's January 2024
Delhi Republic Day parade.
Modi–Trump relationship (2025–present) with US President
Donald Trump in the
Oval Office, February 2025India rejected Trump's offer to mediate
India-China tensions. In May, again, India rejected Trump's and his vice president's offer to mediate when the
2025 India–Pakistan conflict unfolded. The Indian Prime Minister first conveyed this directly to Trump in June. In late July, Modi reiterated the point during a parliamentary debate. On February 13, 2025, Indian Prime Minister
Narendra Modi became the fourth world leader to visit Donald Trump at the White House. During the meeting, Modi praised the
MAGA movement.
Pahalgam attack and Indo-Pak ceasefire Following the
2025 Pahalgam attack, the United States initially expressed support for India’s right to respond. President Donald Trump condemned the attack and offered condolences, while US officials reiterated India’s sovereignty in handling its security challenges. However, bilateral tensions emerged in the weeks that followed—particularly over conflicting claims regarding
the May ceasefire with Pakistan—after India's announcement of halting Operation Sindoor. While the
Trump administration and several US media reports credited American diplomacy for facilitating the truce, Indian officials rejected these assertions. On July 30, 2025, President Trump announced 25% tariffs on India in addition to a penalty due to India's purchase of military equipment from Russia. The move was widely interpreted in Indian media as a response to New Delhi’s consistent emphasis on strategic autonomy and its rejection of third-party mediation. In the weeks that followed, a perceptible shift was noted in President Trump's public statements regarding South Asia. While earlier expressions had focused on supporting India’s counterterrorism efforts, subsequent remarks increasingly highlighted the role of US diplomacy in facilitating the India–Pakistan ceasefire. In public addresses, including a White House briefing and a campaign rally in July, President Trump asserted that American engagement had helped de-escalate the conflict and suggested such efforts merited international recognition. These claims were formally denied by Indian officials. Minister of External Affairs
S. Jaishankar stated in Parliament that no calls or contact occurred between the Indian and US leadership during the period in question and that the ceasefire had been initiated through bilateral military dialogue. Several Indian media outlets noted a correlation between the timing of the US tariff announcement and the increased emphasis in Washington on American diplomatic efforts in South Asia. Commentators in both countries described the developments as indicative of growing friction over differing narratives regarding the ceasefire and broader regional dynamics. Towards the end of July, Trump announced a 25% "reciprocal
tariff" on Indian goods and additional 25% penalties linked to India's purchase of Russian arms and energy, taking total tariffs to around 50%. Trump also revealed a proposed trade and energy development agreement with Pakistan. According to his
Truth Social post, the United States would support the exploration and extraction of Pakistan's "massive" oil reserves through American firms, although the specifics of the deal remained unclear. However, geoscientist Moin Raza Khan, former managing director of
Pakistan Petroleum Limited, disputed these claims, stating that Trump’s assertions about Pakistan’s vast oil reserves did not reflect reality. Khan emphasized the lack of reliable data. Similarly, GA Sabri, a former Pakistani federal petroleum official, dismissed the claims as a "political gimmick." Trump also took a swipe at the Indian economy, describing it as "dead" in the context of stalled negotiations over dairy and agricultural market access. In September 2025, a thaw in bilateral relations was observed when U.S. President Donald Trump made a phone call to Indian Prime Minister Narendra Modi to extend birthday greetings. Following the call, Trump posted on
X, commending Modi for doing a "tremendous job" and expressing gratitude for his support toward efforts aimed at ending the Russia–Ukraine conflict. U.S. President Donald Trump said on 14 January 2026 that countries that do business with Iran will face a new 25% tariff. This includes India which imports 8% of Iran's goods to as of 2023. In February 2026, U.S. President Donald Trump announced a trade agreement with India that would lower U.S. tariffs on Indian goods to approximately 18 percent. The deal was linked to India’s reported agreement to stop purchasing Russian oil, aiming to reduce Moscow’s energy revenues amid the ongoing conflict in Ukraine. == Military relations ==