India and America are two powerful nations who have democratic political systems. Right from the beginning, America was India’s most important trading partner.
(i) Many Indians have gone to America for education or work. Due to the presence of these non-resident Indians, the cultural, social and economic relations between America and India have been increasing.
(ii) After the end of Cold War, the military relations between India and America have increased on a large scale.
(iii) After India accepted free market economy, the speed of economic progress slowly increased. It resulted in further strengthening the trade relations between India and America.
(iv) When India conducted nuclear tests in 1998, there was tension in the relations between the two countries.
(v) Many rounds of discussions took place after that to improve the relations. Through these rounds of talks, America came to believe that India will use its nuclear weapons with responsibility. This completely transformed the Indo-American relations.
(vi) The Civil Nuclear Agreement signed in 2005 that was approved by the U.S. Congress in 2008 was an important landmark in Indo-American relations.