WASHINGTON: Despite differences over the nuclear liability issue, Washington's disappointment on the fighter jets deal, FDI and New Delhi's refusal to toe West's line on Syria and Libya at the UN Security Council, India and the US tried hard to look beyond frictions to expand their ties to new areas this year.
The Indo-US civil nuclear deal, pushed originally by former President George W Bush and Prime Minister Manmohan Singh, was touted as a game changer for bilateral ties in recent years, but with the liability issues causing serious differences, the initial euphoria seemed to have died down.
Having witnessed a major industrial tragedy in Bhopal, liability has been a sensitive issue for India, and the Indian parliament passed the nuclear liability bill that places part of the responsibility of an accident on the supplier company.
The US expressed resentment over the regulations arguing they do not leave a level-playing field for its companies.
Washington was again not satisfied with the stand taken by New Delhi at the UN Security Council, where India differed on key issues like Syria and Libya.
On the military front, the US was unhappy when Defence Minister A K Antony turned down the Pentagon proposal to include defence as part of the Strategic Dialogue. As a result of which the Strategic Dialogue had to be pushed by several months, although the official position was that this was mainly because of the state elections in India.
Another issue that left the US openly disappointed was when India did not shortlist two American companies - Boeing and Lockheed Martin - for its lucrative multi-billion fighter jet deal. Besides, the government's decision to recoil its move to approve foreign direct investment in multi-brand retail also frustrated America's corporate sector.
India too had its own issues with the US this year, including the outrage over the arrest of several students and their radio tagging following the closure of a university in California on visa fraud charges.
New Delhi also did not find much progress on a number of key trade and business areas and relaxation in export of several high tech areas, despite repeated assurances from the Obama Administration in this regard.
The Anna Hazare stir also caused a minor irritant between the two sides when State Department spokesperson Victoria Nuland said the US hoped India would excersie "democratic restraint" in dealing with the protests, following which India reacted sharply calling them "needless" utterances.
However, the differences, along with India's concern over the not so forthcoming co-operation on counterterrorism issues like on David Headley, were never a real threat to ties as the two countries looked beyond the frictions to expand their relationship to new frontiers, laying a foundation to the vision laid down by US President Barack Obama during his 2010 visit, wherein he identified India-US relationship as defining partnerships of the 21st century.
Source : economictimes.indiatimes.com