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India-U.S. Relations UPSC NOTE


India’s opportunities

  • By 2030, India will have a working population of one billion, which is more than the entire G-8 population; today, it has Internet coverage almost equal to it. 

  • India’s per capita mobile data consumption 

    • As recently as eight years ago, it was one of the lowest in the world (122nd).

    • Today it is ranked at one, more than that of the U.S. and China combined, which is helping take prosperity to every nook and corner of India.


India’s infrastructural developments

  • It is a significant success, and its multiplier effects — benefits will reverberate in the next five to 10 years for these are long-gestation projects.

  • Infrastructure spend has shot up, while fiscal prudence has been maintained.

  • Combination of carbon tax on fuel coupled with a coal cess and an infrastructure development cess, found enough savings to fund at least a part of the rail, roads and ports expansion.

    • Because the infrastructure being built was green-friendly and the tax was on non-green items.


  • The fuel subsidy has come down from about ₹50,000 crore in 2015 to just ₹7,000 crore now.

  • And if extrapolated on a rising GDP, then the savings would be of the order of $9-$10 billion.

  • Role of PRAGATI, or Pro-Active Governance and Timely Implementation

    • Even a mere listing of a project on PRAGATI (the monthly review of every Union, State government stakeholder by the Prime Minister) makes officials issue long-pending government orders or clearances, and generally positively smoothens the system to ‘debottleneck’ infrastructure.


  • Role of PRAGATI, or Pro-Active Governance and Timely Implementation

    • A lot of preparation goes behind each PRAGATI review, across departments and States, to ensure that there are decisions (and not dilly-dallying), which is what is making infrastructure delivery happen.

  • Alongside it, GatiShakti, a Geospatial Information Systems overlayer powerful tool prevents unnecessary and random cutting of roads and forests, saving time and resources.

  • Further, for the first time, the private sector was allowed into commercial coal mining, leading to Odisha, West Bengal and Chhattisgarh, reaping huge rewards.

  • While no new oil exploration contracts were awarded between 2010-17, by 2023-end, five lakh square kilometres will be under exploration contracts.

  • Role of Public Financial Management System

    • Money for mega infrastructure spend.


  • Role of Public Financial Management System

  • It is a centralised transaction system to improve the transparency, accountability, and efficiency in government financial spending and to plug waste and leakages.

  • A centralised core database integration of different platforms with banks, 

    • Thereby enabling direct payments to beneficiaries

    • Reducing time and cost while enhancing efficiency.


  • Impressive progress has been made on road construction across India.

  • Parivahan system – which is a one-stop system for transport across 1,400 transport offices, enabling leakage proof revenue collection through the registration of vehicles and licences.

  • India gets $100 billion in remittances and at around 20 million migrant population.

    • India is better compared to  overall global migrant population of about 280 million.


  • Today, it stands shoulder to shoulder with the G-8, as an equal.

Way forward

  • India needs to give up its non-alignment hang-ups of the past and measure each situation on its merit and national interest, like it did with Russian oil.

  • India needs greater digitalisation of internal processes and better services delivery using India Stack.

  • Revive stalled agriculture reforms.


  • Build up supply chain capability.

  • Move manufacturing to India as companies look for other homes outside China.

  • Carry out deeper judicial reforms.

  • U.S. capital and technology can help India many of the following areas.

    • Balance of trade deficit

    • Almost 50% of India is still stuck in agriculture and manufacturing remains stuck at 14%-15% of GDP.

  • India needs critical U.S. help to modernise and build its own capabilities in defence too.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: India-U.S. Relations UPSC NOTE
India-U.S. Relations UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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