The Sanctions Cloud Over India-Us Ties

Context: Delivery of the S-400 Triumf air defence systems from Russia created sanctions cloud over India-U.S. ties.

Background

• Countering America’s Adversaries through Sanctions Act (CAATSA) is the US federal law that imposes economic sanctions on Iran, Russia and North Korea.
  • It is intended to discourage trade with defence and intelligence sectors of Russia.
• Delivery of the S-400 Triumf air defence systems from Russia to India could attract sanctions under CAATSA.

Implications of sanctions cloud over India-US ties

• Risks reversal in upward trajectory of India-US relationship: Which now spans 50 sectors, especially in the field of defence.
  • This may bring India back to its traditional military hardware supplier, Russia which is already on decline.
• Adds to already hostile geopolitical environment in the Indian subcontinent like
  • Growing China-Russia relationship along with their deepening engagement in Afghanistan.
  • Creates differences in Strategic plane: Which could affect strategic ties such as agreement on the upgrade of the Quadrilateral Security Dialogue, sharing same vision on the Indo-Pacific construct
• Creates trust issues among Indian political leadership and top bureaucracy that US cannot be relied upon as a partner. Creates hurdle in exploring ways to co-develop and co-produce military equipment.

Way Forward: India should utilize the Indian-Americans as it did during Civil Nuclear Deal to create a favourable environment for CAATSA waiver.