The two reasons which led to the decline in Indo-American relations are
(i) Pakistan joined the American bloc and received military aid from America which was then being used against India. This was not acceptable to India but America refused to stop its military aid to Pakistan.
(ii) India followed the policy of Non-alignment which meant that India maintained close relations with the United States and Soviet Union equally. This was resented by the United States as it did not favour India’s close relations with the Soviet Union.